Instructions for F Instructions for Form 990-EZ, Short Form Return of Organ

2018

Instructions for Form 990-EZ

Department of the Treasury
Internal Revenue Service

Short Form Return of Organization Exempt From Income Tax Under Section 501(c),
527, or 4947(a)(1) of the Internal Revenue Code
(except private foundations)

Purpose of Form

Section references are to the Internal Revenue Code unless
otherwise noted.
Contents

Purpose of Form . . . . . . . . . . . . . . . . . . . . . . .
General Instructions . . . . . . . . . . . . . . . . . . . .
A. Who Must File . . . . . . . . . . . . . . . . . . .
B. Organizations Not Required To File Form
990 or 990-EZ . . . . . . . . . . . . . . . . . . .
C. Accounting Periods and Methods . . . . .
D. When, Where, and How To File . . . . . . .
E. Extension of Time To File . . . . . . . . . . .
F. Amended Return/Final Return . . . . . . . .
G. Failure-To-File Penalties . . . . . . . . . . . .
H. Requirements for a Properly Completed
Form 990-EZ . . . . . . . . . . . . . . . . . . . .
Specific Instructions for Form 990-EZ . . . . . . .
Completing the Heading of Form 990-EZ . .
Part I. Revenue, Expenses, and Changes in
Net Assets or Fund Balances . . . . . . . . .
Part II. Balance Sheets . . . . . . . . . . . . . . .
Part III. Statement of Program Service
Accomplishments . . . . . . . . . . . . . . . . .
Part IV. List of Officers, Directors, Trustees,
and Key Employees . . . . . . . . . . . . . . .
Part V. Other Information . . . . . . . . . . . . . .
Part VI. Section 501(c)(3) Organizations . . .
Signature Block . . . . . . . . . . . . . . . . . . . .
Appendix of Special Instructions to Form 990-EZ
Contents . . . . . . . . . . . . . . . . . . . . . . . . .
Photographs of Missing Children . . . . . . . . . . .
How To Get Tax Help . . . . . . . . . . . . . . . . . . .
Email Subscription . . . . . . . . . . . . . . . . . . . . .
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Future developments. For the latest information about
developments related to Form 990-EZ and its instructions, such
as legislation enacted after they were published, go to IRS.gov/
Form990EZ.

What’s New
Change to Schedule B reporting of donor information. A
tax-exempt organization—other than a section 501(c)(3)
organization (including a section 4947(a)(1) nonexempt
charitable trust) or a section 527 political organization—is no
longer required to report the names and addresses of its
contributors on the Schedule B (Form 990, 990-EZ, or 990-PF),
Schedule of Contributors, attached to its Form 990 or Form
990-EZ for tax years ending on or after December 31, 2018. See
Rev. Proc. 2018-38, 2018-31 I.R.B. 280, available at IRS.gov/irb/
2018-31_IRB#RP-2018-38, for more information about this
revised disclosure requirement.
Jan 02, 2019

Form 990, Return of Organization Exempt From Income Tax,
and Form 990-EZ are used by tax-exempt organizations,
nonexempt charitable trusts (that are not treated as private
foundations), and section 527 political organizations to provide
the IRS with the information required by section 6033.
An organization's completed Form 990 or 990-EZ, and a
section 501(c)(3) organization's Form 990-T, Exempt
Organization Business Income Tax Return, generally are
available for public inspection as required by section 6104.
Schedule B (Form 990, 990-EZ, or 990-PF), Schedule of
Contributors, is open for public inspection for section 527
organizations filing Form 990 or 990-EZ. Form 990-PF, Return of
Private Foundation or Section 4947(a)(1) Trust Treated as
Private Foundation, is also open for public inspection for
organizations filing Form 990-PF. For other organizations that
file Form 990 or 990-EZ, parts of Schedule B can be open to
public inspection. For more details, see Appendix D: Public
Inspection of Returns, and the Instructions for Schedule B (Form
990, 990-EZ, or 990-PF).
Some members of the public rely on Form 990 or 990-EZ as
the primary or sole source of information about a particular
organization. How the public perceives an organization in such
cases may be determined by the information presented on its
return.
Other purposes of Form 990 and 990-EZ include the
following.
1. Form 990-EZ can be filed by organizations with gross
receipts of less than $200,000 and total assets of less than
$500,000 at the end of their tax year.
2. Sponsoring organizations of donor advised funds (as
defined in section 4966(d)(1)), organizations that operate a
hospital facility, organizations recognized by the IRS as section
501(c)(29) nonprofit health insurance issuers, and certain
controlling organizations defined in section 512(b)(13) must file
Form 990 rather than Form 990-EZ regardless of the amount of
their gross receipts and total assets. See the instructions for
lines 44 and 45, and General Instruction A. Who Must File,
before completing this form.
3. Form 990-EZ can’t be used by a private foundation
required to file Form 990-PF. A section 501(c)(3) or section
4947(a)(1) organization should refer to the Instructions for
Schedule A (Form 990 or 990-EZ), Public Charity Status and
Public Support, to determine whether it is a private foundation.
4. Form 990 must be used to file a group return, not Form
990-EZ. See General Instruction A.

General Instructions
Overview of Form 990-EZ. The Form 990-EZ is an annual
information return required to be filed with the IRS by many
organizations exempt from income tax under section 501(a), and
certain political organizations and nonexempt charitable trusts.
Parts I through V of the form must be completed by all filing
organizations (Part VI must be completed by section 501(c)(3)

Cat. No. 64888C

end of the tax year (with exceptions described below for
organizations eligible to submit Form 990-N and for certain
organizations described in General Instruction B. Organizations
Not Required To File Form 990 or 990-EZ, later). Organizations
that must file include the following.
• Organizations described in section 501(c)(3) (other than
private foundations).
• Organizations described in other section 501(c) subsections
(other than black lung benefit trusts).

organizations and section 4947(a)(1) nonexempt charitable
trusts), and require reporting on the organization's exempt and
other activities, finances, compliance with certain federal tax
filings and requirements, and compensation paid to certain
persons. Additional schedules are required to be completed
depending on the activities and type of organization. The
completed Form 990-EZ filed with the IRS, except for certain
contributor information on Schedule B (Form 990, 990-EZ, or
990-PF), is required to be made available to the public by the
IRS and the filing organization (see Appendix D). Also, the
organization may be required to file the completed Form 990-EZ
with state governments to satisfy state reporting requirements.
See Appendix G: Use of Form 990 and 990-EZ To Satisfy State
Reporting Requirements.

Gross receipts. Gross receipts are the total amounts the
organization received from all sources during its annual
accounting period, without subtracting any costs or expenses.
See Appendix B: How To Determine Whether an Organization's
Gross Receipts Are Normally $50,000 (or $5,000) or Less for a
discussion of gross receipts. Total assets is the amount reported
by the organization on its balance sheet (Form 990-EZ, Part II,
line 25, column (B)) as of the end of the year, without reduction
for liabilities.
For purposes of Form 990 or Form 990-EZ reporting, the term
“section 501(c)(3)” includes organizations exempt under
sections 501(e) and (f) (cooperative service organizations),
501(j) (amateur sports organizations), 501(k) (child care
organizations), and 501(n) (charitable risk pools). In addition,
any organization described in one of these sections is also
subject to section 4958 if it obtains a determination letter from
the IRS stating that it is described in section 501(c)(3).

Reminder: Do Not Include Social
Security Number on Publicly
Disclosed Forms

Because the filing organization and the IRS are required to
publicly disclose the organization’s annual information returns,
social security numbers shouldn’t be included on this form.
Documents subject to disclosure include schedules and
attachments filed with the form. For more information, see
Appendix D.
Organizations that have total gross income from
unrelated trades or businesses of at least $1,000 also
CAUTION are required to file Form 990-T, in addition to any
required Form 990, 990-EZ, or 990-N.

!

Form 990-N. If an organization normally has annual gross
receipts of $50,000 or less, it must submit Form 990-N if it
doesn’t file Form 990 or Form 990-EZ (with exceptions
described later for certain section 509(a)(3) supporting
organizations and for certain organizations described in General
Instruction B). If the organization chooses to file Form 990-EZ,
be sure to file a complete return. See Appendix B for a
discussion of gross receipts and General Instruction H.
Requirements for a Properly Completed Form 990-EZ for a
discussion of a complete return.

Helpful hints. The following hints may help you more efficiently
review these instructions and complete the form.
1. Throughout these instructions, “the organization” and the
“filing organization” both refer to the organization filing the Form
990-EZ.
2. The examples appearing throughout these instructions
are illustrative only and for the purpose of completing Form
990-EZ, but aren’t all-inclusive.
3. Instructions for the Form 990-EZ schedules are published
separately from these instructions.
4. Unless otherwise specified, information should be
provided for the organization’s tax year. For instance, an
organization should answer “Yes” to a question asking whether it
conducted a certain type of activity only if it conducted that
activity during the tax year.

Electronic filing. Organizations can file Form 990-EZ
electronically. See General Instruction D. When, Where, and
How To File, for who must file electronically.
Foreign and U.S. possession organizations. Foreign
organizations and U.S. possession organizations, as well as
domestic organizations described above, must file Form 990 or
990-EZ unless specifically excepted under General Instruction
B. Report amounts in U.S. dollars, and state what conversion
rate the organization uses. Combine amounts from within and
outside the United States, and report the total for each item. All
information must be written in English.

A. Who Must File

Most organizations exempt from income tax under section
501(a) must file an annual information return (Form 990 or
990-EZ) or submit an annual electronic notice (Form 990-N,
Electronic Notice (e-Postcard) for Tax-Exempt Organizations
Not Required to File Form 990 or Form 990-EZ), depending
upon the organization's gross receipts and total assets.

Sponsoring organizations of donor advised funds.
Sponsoring organizations of donor advised funds (as defined in
section 4966(d)(1)) must file Form 990 and not Form 990-EZ.
See line 44a and the related instructions.
Organizations that operate one or more hospital facilities.
Organizations that operated one or more hospital facilities during
the tax year must file Form 990 and not Form 990-EZ, and
complete Schedule H (Form 990), Hospitals. A hospital facility is
a facility that is required to be licensed, registered, or similarly
recognized by a state as a hospital. See line 44b and the related
instructions.

If an organization has gross receipts less than $200,000 and
total assets at the end of the year less than $500,000, it can file
Form 990-EZ, instead of Form 990. But see the special rules
later for Sponsoring organizations of donor advised funds,
Organizations that operate one or more hospital facilities,
Section 501(c)(29) nonprofit health insurance issuers, and
Controlling organizations described in section 512(b)(13).

Section 501(c)(29) nonprofit health insurance issuers.
Nonprofit health insurance issuers described in section 501(c)
(29) must file Form 990 and not Form 990-EZ.

Form 990 (not 990-EZ or 990-N) must be filed by an
organization exempt from income tax under section 501(a)
(including an organization that hasn’t applied for recognition of
exemption or whose application for recognition of exemption is
pending) if it has either gross receipts greater than or equal to
$200,000 or total assets greater than or equal to $500,000 at the

Controlling organizations described in section 512(b)(13).
A controlling organization of one or more controlled entities, as
described in section 512(b)(13), must file Form 990 and not
Form 990-EZ if it is required to file an annual information return
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2018 Instructions for Form 990-EZ

must check the “Application pending” checkbox in Item B of the
Form 990 or 990-EZ header (whether or not a Form 1023,
1023-EZ, 1024, or 1024-A has been filed) to indicate that the
Form 990 or 990-EZ is being filed in the belief that the
organization is exempt under section 501(a).
To qualify for recognition of tax exemption retroactive to its
date of organization or formation, an organization claiming
tax-exempt status generally must file Form 1023, 1023-EZ,
1024, or 1024-A within 27 months of the end of the month in
which it was legally organized or formed.

for the year and if there was a certain type of transfer of funds
between the controlling organization and any controlled entity
during the year. See line 45 and the related instructions.
Section 509(a)(3) supporting organizations. A section
509(a)(3) supporting organization must file Form 990 or 990-EZ,
even if its gross receipts are normally $50,000 or less, and even
if it is described in Rev. Proc. 96-10, 1996-1 C.B. 577, or is an
affiliate of a governmental unit described in Rev. Proc. 95-48,
1995-2 C.B. 418, unless it qualifies as one of the following.
1. An integrated auxiliary of a church, as described in
Regulations section 1.6033-2(h).
2. The exclusively religious activities of a religious order.
3. An organization whose gross receipts are normally not
more than $5,000 that supports a section 501(c)(3) religious
organization.

B. Organizations Not Required To File
Form 990 or 990-EZ

An organization described below doesn’t have to file Form 990
or 990-EZ even if it has at least $200,000 of gross receipts or
$500,000 total assets at the end of the tax year (except for
section 509(a)(3) supporting organizations described in General
Instruction A). See General Instruction A for determining whether
the organization can file Form 990-EZ instead of Form 990. An
organization described in item 10 or 11 under Certain
organizations with limited gross receipts, or item 13 under
Certain organizations that file different kinds of annual
information returns, is required to submit Form 990-N unless it
voluntarily files Form 990, 990-EZ, or 990-BL, Information and
Initial Excise Tax Return for Black Lung Benefit Trusts and
Certain Related Persons, as applicable.

If the organization is described in (3), then it must submit
Form 990-N unless it voluntarily files Form 990 or Form 990-EZ.
Section 501(c)(7) and 501(c)(15) organizations. Section
501(c)(7) and 501(c)(15) organizations apply the same gross
receipts test as other organizations to determine whether they
must file a Form 990 or 990-EZ, but use a different definition of
gross receipts to determine whether they qualify as tax exempt
for the tax year. See Appendix C: Special Gross Receipts Tests
for Determining Exempt Status of Section 501(c)(7) and Section
501(c)(15) Organizations for more information.

Certain religious organizations
1. A church, an interchurch organization of local units of a
church, a convention or association of churches, or an
integrated auxiliary of a church as described in Regulations
section 1.6033-2(h) (such as a men's or women's organization,
religious school, mission society, or youth group).
2. A church-affiliated organization that is exclusively
engaged in managing funds or maintaining retirement programs
and is described in Rev. Proc. 96-10. But see the filing
requirements for section 509(a)(3) supporting organizations in
General Instruction A.
3. A school below college level affiliated with a church or
operated by a religious order, as described in Regulations
section 1.6033-2(g)(1)(vii).
4. A mission society sponsored by, or affiliated with, one or
more churches or church denominations, if more than half of the
society's activities are conducted in, or directed at, persons in
foreign countries.
5. An exclusively religious activity of any religious order
described in Rev. Proc. 91-20, 1991-1 C.B. 524.
Certain governmental organizations
6. A state institution whose income is excluded from gross
income under section 115.
7. A governmental unit or affiliate of a governmental unit
described in Rev. Proc. 95-48. But see the filing requirements for
section 509(a)(3) supporting organizations in General Instruction
A.
8. An organization described in section 501(c)(1). A section
501(c)(1) organization is a corporation organized under an act of
Congress that is an instrumentality of the United States, and
exempt from federal income taxes.
Certain political organizations
9. A political organization that is:
• A state or local committee of a political party,
• A political committee of a state or local candidate,
• A caucus or association of state or local officials, or
• Required to report under the Federal Election Campaign Act
of 1971 as a political committee (as defined in section 301(4) of
such Act).

Section 527 political organizations. Tax-exempt political
organizations must file Form 990 or 990-EZ unless their annual
gross receipts are less than $25,000 during the tax year or they
are otherwise excepted under General Instruction B. A section
527 political organization that is a qualified state or local political
organization must file Form 990 or 990-EZ only if it has gross
receipts of $100,000 or more. Political organizations aren’t
required to submit Form 990-N.
Section 4947(a)(1) nonexempt charitable trusts. A
nonexempt charitable trust described under section 4947(a)(1)
(if it isn’t treated as a private foundation) is required to file Form
990 or Form 990-EZ unless excepted under General Instruction
B. Such a trust is treated like an exempt section 501(c)(3)
organization for purposes of completing the form. Section
4947(a)(1) trusts must complete all sections of the Form 990-EZ
and schedules that 501(c)(3) organizations must complete. All
references to a section 501(c)(3) organization in the Form
990-EZ, schedules, and instructions include a section 4947(a)(1)
trust (for instance, such a trust must complete Schedule A (Form
990 or 990-EZ)), unless otherwise specified. If such a trust
doesn’t have any taxable income under Subtitle A of the Code, it
can file Form 990 or Form 990-EZ to meet its section 6012 filing
requirement and doesn’t have to file Form 1041, U.S. Income
Tax Return for Estates and Trusts.
Group returns. A group return filed by the central or parent
organization on behalf of the subordinates in a group exemption
must be filed using Form 990, not Form 990-EZ.
Returns when exempt status not established. An
organization is required to file Form 990 or 990-EZ in
accordance with these instructions if the organization claims
exempt status under section 501(a) but hasn’t established such
exempt status by filing Form 1023, Application for Recognition of
Exemption Under Section 501(c)(3) of the Internal Revenue
Code; Form 1023-EZ, Streamlined Application for Recognition of
Exemption Under Section 501(c)(3) of the Internal Revenue
Code; Form 1024, Application for Recognition of Exemption
Under Section 501(a); or Form 1024-A, Application for
Recognition of Exemption Under Section 501(c)(4) of the
Internal Revenue Code, and receiving an IRS determination
letter recognizing exempt status. In such cases, the organization
2018 Instructions for Form 990-EZ

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organization's fiscal year began in 2018 and the date the fiscal
year ended in 2019.

Certain organizations with limited gross receipts
10. An organization whose gross receipts are normally
$50,000 or less. Such organizations generally are required to
submit Form 990-N if they choose not to file Form 990 or
990-EZ. To determine what an organization's gross receipts
“normally” are, see Appendix B.
11. Foreign organizations and organizations located in U.S.
possessions, whose gross receipts from sources within the
United States are normally $50,000 or less, and which didn’t
engage in significant activity in the United States (other than
investment activity). Such organizations, if they claim U.S. tax
exemption or are recognized by the IRS as tax exempt, generally
are required to submit Form 990-N if they choose not to file Form
990 or 990-EZ.
If a foreign organization or organization located in a U.S.
possession is required to file a Form 990 or Form 990-EZ, then
its worldwide gross receipts, as well as assets, are taken into
account in determining whether it qualifies to file Form 990-EZ.
To determine what an organization's gross receipts normally are,
see Appendix B.
Certain organizations that file different kinds of annual
information returns
12. A private foundation (including a private operating
foundation) exempt under section 501(c)(3) and described in
section 509(a). Use Form 990-PF for a taxable private
foundation, a section 4947(a)(1) nonexempt charitable trust
treated as a private foundation, and a private foundation
terminating its status by becoming a public charity under section
507(b)(1)(B) for tax years within its 60-month termination period.
If the section 507(b)(1)(B) organization successfully terminates,
then it files Form 990 or 990-EZ in its final year of termination.
13. A black lung benefit trust described in section 501(c)(21).
Use Form 990-BL.
14. A religious or apostolic organization described in section
501(d). Use Form 1065, U.S. Return of Partnership Income.
15. A stock bonus, pension, or profit-sharing trust that
qualifies under section 401. Use Form 5500, Annual Return/
Report of Employee Benefit Plan.

Short period. A short accounting period is a period of less than
12 months, which exists when an organization first commences
operations, changes its accounting period, or terminates. If the
organization's short year began in 2018 and ended before
December 31, 2018 (not on or after December 31, 2018), it may
use either 2017 Form 990-EZ or 2018 Form 990-EZ or Form 990
to file for such short year. The 2018 form may also be used for a
short period beginning in 2019 and ending before December 31,
2019 (not on or after December 31, 2019). When doing so,
provide the information for designated years listed on the return,
other than the tax year being reported, as if they were updated
on the 2019 form. For example, provide the information in
Schedule A (Form 990 or 990-EZ), Part II, for the tax years
2015–2019, rather than for tax years 2014–2018. A short-period
return can’t be filed electronically unless it is an initial return for
which the “Initial return” box is checked or is a final return for
which the “Final return/terminated” box is checked in Item B of
the Form 990-EZ heading.
Accounting period change. If the organization changes its
accounting period, it must file a Form 990-EZ for the short period
resulting from the change. Enter “Change of Accounting Period”
at the top of this short-period return.
If the organization has previously changed its annual
accounting period at any time within the 10-calendar-year period
that includes the beginning of the short period resulting from
the current change in accounting period, and it had a Form
990 series or income tax return filing requirement at any time
during that 10-year period, it must also file a Form 1128,
Application To Adopt, Change, or Retain a Tax Year, with the
short-period return. See Rev. Proc. 85-58, 1985-2 C.B. 740.
If an organization that submits Form 990-N changes its
accounting period, it must report this change either on Form 990,
990-EZ, or 1128, or by sending a letter to:
Internal Revenue Service
1973 Rulon White Blvd.
Ogden, UT 84201

Subordinate organizations in a group exemption which

Accounting Methods

TIP are included in a group return filed for the tax year by the

central organization shouldn’t file a separate Form 990
or 990-EZ, or submit Form 990-N for the tax year.

Unless instructed otherwise, the organization should generally
use the same accounting method on the return (including the
Form 990-EZ and all schedules) to report revenue and expenses
that it regularly uses to keep its books and records. To be
acceptable for Form 990-EZ reporting purposes, however, the
method of accounting must clearly reflect income.

A public charity described in section 170(b)(1)(A)(iv) or

TIP (vi) or 509(a)(2) that isn’t within its initial 5 years of

existence should first complete Part II or III of
Schedule A (Form 990 or Form 990-EZ) to ensure that it
continues to qualify as a public charity for the tax year. If it fails to
qualify as a public charity, then it must file Form 990-PF rather
than Form 990-EZ.

Accounting method change. Generally, the organization must
file Form 3115, Application for Change in Accounting Method, to
change its accounting method. An exception applies where a
section 501(c) organization changes its accounting method to
comply with Financial Accounting Standards Board Accounting
Standards Codification 958 (ASC 958) (formerly identified as
SFAS 116). See Notice 96-30, 1996-1 C.B. 378. An organization
that makes a change in accounting method, regardless of
whether it files Form 3115, must report any adjustment required
by section 481(a) on Form 990-EZ, line 20 (other changes in net
assets or fund balances), as a net asset adjustment made during
the tax year. The organization must explain in Schedule O (Form
990 or 990-EZ), Supplemental Information to Form 990 or
990-EZ, the change and net asset adjustment. The adjustment
must be identified as the effect of changing to the method
provided in ASC 958. The beginning of year statement of
financial position (balance sheet) shouldn’t be restated to reflect
any prior period adjustments.

C. Accounting Periods and Methods
Accounting Periods
Calendar year. Use the 2018 Form 990-EZ to report on the
2018 calendar year accounting period. A calendar year
accounting period begins on January 1 and ends on December
31.
Fiscal year. If the organization has established a fiscal year
accounting period, use the 2018 Form 990-EZ to report on the
organization's fiscal year that began in 2018 and ended 12
months later. A fiscal year accounting period should normally
coincide with the natural operating cycle of the organization. Be
certain to indicate in the heading of Form 990-EZ the date the

State reporting. Many states that accept Form 990-EZ in place
of their own forms require that all amounts be reported based on
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2018 Instructions for Form 990-EZ

returns of any type during the calendar year ending with or within
the organization's tax year and has total assets of $10 million or
more at the end of the tax year, it must file Form 990
electronically (and not Form 990-EZ). “Returns” for this purpose
include information returns (for example, Forms W-2, Wage and
Tax Statement; Forms 1099), income tax returns, employment
tax returns (including quarterly Form 941, Employer's
QUARTERLY Federal Tax Return), and excise tax returns.
If an organization is required to file a return electronically but
doesn’t, the organization is considered not to have filed its
return, even if a paper return is submitted, unless it is reporting a
name change, in which case it must file by paper and attach the
documents described in Item B. under Specific Instructions,
later. See Regulations section 301.6033-4 for more information
on required electronic filing of Form 990.
For additional information on the electronic filing requirement,
visit IRS.gov/Efile.
The IRS may waive the requirements to file electronically in
cases of undue hardship. For information on filing a waiver, see
Notice 2010-13, 2010-4 I.R.B. 327, available at IRS.gov/irb/
2010-04_IRB/ar14.html.

the accrual method of accounting. If the organization prepares
Form 990-EZ for state reporting purposes, it can file an identical
return with the IRS even though the return doesn’t agree with the
books of account, unless the way one or more items are
reported on the state return conflicts with the instructions for
preparing Form 990-EZ for filing with the IRS.
Example 1. The organization maintains its books on the
cash receipts and disbursements method of accounting but
prepares a Form 990-EZ return for the state based on the
accrual method. It could use that return for reporting to the IRS.
Example 2. A state reporting requirement requires the
organization to report certain revenue, expense, or balance
sheet items differently from the way it normally accounts for
them on its books. A Form 990-EZ prepared for that state is
acceptable for the IRS reporting purposes if the state reporting
requirement doesn’t conflict with the Form 990-EZ instructions.
An organization should keep a reconciliation of any
differences between its books of account and the Form 990-EZ
that is filed.
See Pub. 538, Accounting Periods and Methods, and

TIP the instructions for Forms 1128 and 3115, about

E. Extension of Time To File

reporting changes to accounting periods and methods.

D. When, Where, and How To File

Use Form 8868, Application for Automatic Extension of Time To
File an Exempt Organization Return, to request an automatic
extension of time to file.

If the organization is liquidated, dissolved, or terminated, file
the return by the 15th day of the 5th month after liquidation,
dissolution, or termination.

To amend the organization's return for any year, file a new return
including any required schedules. Use the version of Form
990-EZ applicable to the year being amended. The amended
return must provide all the information called for by the form and
instructions, not just the new or corrected information. Check the
“Amended return” box in Item B of the heading of the return.
Also, list in Schedule O (Form 990 or 990-EZ) which parts and
schedules of the Form 990-EZ were amended and describe the
amendments.

File Form 990-EZ by the 15th day of the 5th month after the
organization's accounting period ends (May 15 for a
calendar-year filer). If the due date falls on a Saturday, Sunday,
or legal holiday, file on the next business day. A business day is
any day that isn’t a Saturday, Sunday, or legal holiday.

F. Amended Return/Final Return

If the return isn’t filed by the due date (including any
extension granted), attach a statement giving the reason(s) for
not filing on time.

The organization can file an amended return at any time to
change or add to the information reported on a previously filed
return for the same period. It must make the amended return
available for inspection for 3 years from the date of filing or 3
years from the date the original return was due, whichever is
later.

Send the return to the:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027

If the organization needs a copy of its previously filed return, it
can file Form 4506-A, Request for Public Inspection or Copy of
Exempt or Political Organization IRS Form. Go to IRS.gov/Forms
for information on getting blank tax forms.

Foreign and U.S. possession organizations. If the
organization's principal business, office, or agency is located in a
foreign country or U.S. possession, send the return to the:
Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

If the return is a final return, the organization must check the
“Final return/terminated” box in Item B of the heading of the
return and complete Schedule N (Form 990 or 990-EZ),
Liquidation, Termination, Dissolution, or Significant Disposition
of Assets.

Private delivery services. Tax-exempt organizations can use
certain private delivery services (PDS) designated by the IRS to
meet the “timely mailing as timely filing” rule for tax returns. Go to
IRS.gov/PDS for the current list of designated services.
The PDS can tell you how to get written proof of the mailing
date.
For the IRS mailing address to use if you're using PDS, go to
IRS.gov/PDSstreetAddresses.

!

CAUTION

Amended returns and state filing considerations. State law
can require that the organization send a copy of an amended
Form 990-EZ return (or information provided to the IRS
supplementing the return) to the state with which it filed a copy of
Form 990-EZ originally to meet that state's filing requirement. A
state can require an organization to file an amended Form
990-EZ to satisfy state reporting requirements, even if the
original return was accepted by the IRS.

PDS can’t deliver items to P.O. boxes. You must use the
U.S. Postal Service to mail any item to an IRS P.O. box
address.

G. Failure-To-File Penalties
Against the organization. Under section 6652(c)(1)(A), a
penalty of $20 a day, not to exceed the lesser of $10,000 or 5%
of the gross receipts of the organization for the year, can be
charged when a return is filed late, unless the organization can

Electronic filing. The organization can file Form 990-EZ or
Form 990 and related forms, schedules, and attachments
electronically. However, if an organization files at least 250
2018 Instructions for Form 990-EZ

-5-

forms and schedules are clear enough to photocopy legibly. For
more information on public inspection requirements, see
Appendix D and Pub. 557, Tax-Exempt Status for Your
Organization.

show that the late filing was due to reasonable cause.
Organizations with annual gross receipts exceeding $1,046,500
are subject to a penalty of $100 for each day failure continues
(with a maximum penalty for any one return of $52,000). The
penalty applies on each day after the due date that the return
isn’t filed.
Tax-exempt organizations which are required to file
electronically but don’t are deemed to have failed to file the
return. This is true even if a paper return is submitted, unless the
organization files by paper to report a name change.
The penalty can also be charged if the organization files an
incomplete return, such as by failing to complete a required line
item or a required part of a schedule. To avoid penalties and
having to supply missing information later:
1. Complete all applicable line items;
2. Unless instructed to skip a line, answer each question on
the return;
3. Make an entry (including a zero when appropriate) on all
lines requiring an amount or other information to be reported;
and
4. Provide required explanations as instructed.

Signature. A Form 990-EZ isn’t complete without a proper
signature. For details, see the instructions for the Signature
Block, later.
Recordkeeping. The organization's records should be kept as
long as they can be needed for the administration of any
provision of the Internal Revenue Code. Usually, records that
support an item of income, deduction, or credit must be kept a
minimum of 3 years from the date the return is due or filed,
whichever is later. Keep records that verify the organization's
basis in property as long as they are needed to figure the basis
of the original or replacement property. Applicable law and an
organization's policies can require that the organization retain
records longer than 3 years.
The organization should also keep copies of any returns it
has filed. They help in preparing future returns and making
computations when filing an amended return.
Rounding off to whole dollars. The organization must round
off cents to whole dollars on the returns and schedules, unless
otherwise noted for particular questions. To round, drop
amounts under 50 cents and increase amounts from 50 to 99
cents to the next dollar. For example, $1.49 becomes $1 and
$2.50 becomes $3. If the organization has to add two or more
amounts to figure the amount to enter on a line, include cents
when adding the amounts and round off only the total.

Also, this penalty can be imposed if the organization's return
contains incorrect information. For example, an organization that
reports contributions net of related fundraising expenses may be
subject to this penalty.
Use of a paid preparer doesn’t relieve the organization of its
responsibility to file a complete and accurate return.
Against responsible person(s). If the organization doesn’t file
a complete return or doesn’t furnish correct information, the IRS
will send the organization a letter that includes a fixed time to
fulfill these requirements. After that period expires, the person
failing to comply will be charged a penalty of $10 a day. The
maximum penalty on all persons for failures for any one return
shall not exceed $5,000.
There are also penalties (fines and imprisonment) for willfully
not filing returns and for filing fraudulent returns and statements
with the IRS (sections 7203, 7206, and 7207). States can
impose additional penalties for failure to meet their separate
filing requirements.

Completing all lines. Make an entry (including a -0- when
appropriate) on all lines requiring an amount or other information
to be reported. Do not leave any applicable lines blank, unless
expressly instructed to skip that line. If answering a line is
predicated on a “Yes” answer to the preceding line, and if the
organization's answer to the preceding line was “No,” then leave
the “If Yes” line blank.
In general, answers can be explained or supplemented in
Schedule O if the allotted space in the form or other schedule is
insufficient, or if a “Yes” or “No” answer is required but the
organization wishes to explain its answer.
Missing or incomplete parts of the form and/or required
schedules may result in the IRS contacting you to obtain the
missing information. Failure to supply the information may result
in a penalty being assessed to your account. For tips on filing
complete returns, go to IRS.gov/Charities.

Automatic revocation for nonfiling for 3 consecutive years.
The law requires most tax-exempt organizations, other than
churches, to file an annual Form 990, 990-EZ, or 990-PF with the
IRS, or to submit a Form 990-N to the IRS. If an organization fails
to file an annual return or submit an annual notice as required for
3 consecutive years, its tax-exempt status is automatically
revoked on and after the due date for filing its third annual return
or notice. Organizations that lose their exemption may need to
file income tax returns and pay income tax, but may apply for
reinstatement of exemption. For details, go to IRS.gov/EO.

Reporting proper amounts. Some lines request information
reported on other forms filed by the organization, such as Forms
W-2, 1099, and 990-T. If the organization is aware that the
amount actually reported on the other form is incorrect, it must
report on Form 990-EZ the information that should have been
reported on the other form (in addition to filing an amended form
with the proper amount).
In general, don’t report negative numbers, but report -0- in
lieu of a negative number, unless the instructions provide
otherwise. Report revenue and expenses separately and don’t
net related items, unless otherwise provided.

H. Requirements for a Properly
Completed Form 990-EZ

All organizations filing Form 990-EZ must complete Parts I
through V of the Form 990-EZ, and any required schedules and
attachments. Section 501(c)(3) organizations must also
complete Part VI. If an organization isn’t required to file Form
990-EZ but chooses to do so, it must file a complete return and
provide all of the information requested, including the required
schedules.

Inclusion of activities and items of disregarded entities
and joint ventures. An organization must report in its Form
990-EZ all of the revenues, expenses, assets, liabilities, and net
assets or funds of a disregarded entity of which it is the sole
member, and must report in its Form 990-EZ its share of all such
items of a joint venture or other investment or arrangement
treated as a partnership for federal income tax purposes. This
includes passive investments. In addition, the organization
generally must report the activities of a disregarded entity or a

Public inspection. In general, all information the organization
reports on or with its Form 990-EZ, including schedules and
attachments, will be available for public inspection. Note,
however, the special rules for Schedule B, a required schedule
for certain organizations that file Form 990-EZ. Make sure the
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2018 Instructions for Form 990-EZ

joint venture as its own activities in the appropriate parts and
schedules of the Form 990-EZ.

Specific Instructions for Form
990-EZ

A disregarded entity generally must use the employer

TIP identification number (EIN) of its sole member. An

exception applies to employment taxes. For wages paid
to employees of a disregarded entity, the disregarded entity
must file separate employment tax returns and use its own EIN
on such returns. See Regulations sections 301.6109-1(h) and
301.7701-2(c)(2)(iv).

Completing the Heading of Form
990-EZ

List of required schedules and attachments. An
organization may be required to file one or more of Schedules A,
B, C, E, G, L, N, or O, or various other attachments as described
in the form or instructions. The following is a list of the Form
990-EZ schedules that the organization may have to complete.
• Schedule A, Public Charity Status and Public Support. See
Part V, Other Information.
• Schedule B, Schedule of Contributors. See Item H.
Schedule B, later.
• Schedule C, Political Campaign and Lobbying Activities, Part
III. See Line 35c. Section 6033(e) Tax for Lobbying
Expenditures.
• Schedule C, Part I. See Line 46. Political Campaign Activities.
• Schedule C, Part II. See Line 47. Lobbying Activities.
• Schedule E, Schools. See Line 48. Schools.
• Schedule G, Supplemental Information Regarding
Fundraising or Gaming Activities, Parts II and III. See lines 6a
through 6d (gaming and fundraising events).
• Schedule L, Transactions With Interested Persons, Part I. See
Line 40b (section 4958 excess benefit transactions).
• Schedule L, Part II. See Line 38. Loans to or From Officers,
Directors, Trustees, and Key Employees.
• Schedule N, Liquidation, Termination, Dissolution, or
Significant Disposition of Assets, Parts I (liquidation, termination,
or dissolution) and II (significant disposition of net assets). See
Line 36. Liquidation, Dissolution, Termination, or Significant
Disposition of Net Assets.
• Schedule O, Supplemental Information to Form 990 or Form
990-EZ. See lines 8, 10, 16, 20, 24, 26, 31, 33, 34, 35, and 44.

File the 2018 return for calendar year 2018 and fiscal years that
began in 2018 and ended in 2019. For a fiscal year return, fill in
the tax year space at the top of page 1 of the return. See
General Instruction C. Accounting Periods and Methods for
additional information about accounting periods.

Item A. Accounting Period

Item B. Checkboxes

Address change. Check this box if the organization changed
its address and hasn’t reported such a change on its most
recently filed Form 990, 990-EZ, or 990-N, or in correspondence
to the IRS.
Name change. Check this box if the organization changed
its legal name (not its “doing business as” name) and hasn’t
reported such change on its most recently filed Form 990 or
990-EZ or in correspondence to the IRS. If the organization
changed its name, file Form 990-EZ by paper and attach the
following documents (see the line 34 instructions).

Assembling Form 990-EZ, schedules, and attachments.
Before filing the Form 990-EZ, assemble the package of forms,
schedules, and attachments in the following order.
1. Core form with all parts completed (Parts I–V, Part VI by
section 501(c)(3) organizations, Signature Block).
2. Schedules A, B, C, E, G, L, N, and/or O, completed as
applicable, filed in alphabetical order.
3. Attachments, completed as applicable. These include (a)
name change amendment to organizing document required by
Item B of the heading on page 1 of the return; (b) reasonable
cause explanation for a late-filed return; and (c) articles of
merger or dissolution, resolutions, and plans of liquidation or
merger required by Schedule N (Form 990 or 990-EZ).
Do not attach materials not authorized in the instructions, or
not otherwise authorized by the IRS.

THEN attach...

a corporation

a copy of the amendment to the
articles of incorporation, and proof of
filing with the appropriate state
authority.

a trust

a copy of the amendment to the trust
instrument, or a resolution to amend
the trust instrument, showing the
effective date of the change of name
and signed by at least one trustee.

an unincorporated association

a copy of the amendment to the
articles of association, constitution, or
other organizing document, showing
the effective date of the change of
name and signed by at least two
officers, trustees, or members.

Initial return. Check this box if this is the first time the
organization is filing a Form 990-EZ and it hasn’t previously filed
a Form 990, 990-PF, 990-T, or 990-N.
Final return/terminated. Check this box if the organization
has terminated its existence or ceased to be a section 501(a) or
section 527 organization and is filing its final return as an exempt
organization or section 4947(a)(1) trust. See the instructions for
line 36 that discuss liquidations, dissolutions, terminations, or
significant disposition of net assets. An organization that checks
this box because it has liquidated, terminated, ceased
operations, dissolved, merged into another organization, or has
had its exemption revoked during the tax year must also attach
Schedule N (Form 990 or 990-EZ).

To facilitate the processing of your return, don’t
password protect or encrypt PDF attachments.
CAUTION Password protecting or encrypting a PDF file that is
attached to an e-filed return prevents the IRS from opening the
attachment.

!

2018 Instructions for Form 990-EZ

IF the organization is...

An organization must support any claim to have
liquidated, terminated, dissolved, or merged by
CAUTION attaching a certified copy of its articles of dissolution or
merger approved by the appropriate state authority. If a certified
copy of its articles of dissolution or merger isn’t available, the
organization may submit a copy of a resolution(s) of its
governing body approving plans of liquidation, termination,
dissolution, or merger.

!

-7-

A subordinate organization in a group exemption that is

Amended return. Check this box if the organization
previously filed a return with the IRS for the same tax year and is
now filing another return for the same tax year to amend the
previously filed return. Explain in Schedule O (Form 990 or
990-EZ) which parts, schedules, or attachments of the Form
990-EZ were amended and describe the amendments. See
General Instruction F. Amended Return/Final Return for more
information.
Application pending. Check this box if the organization
either has filed a Form 1023, 1023-EZ, 1024, or 1024-A with the
IRS and is awaiting a response, or claims tax-exempt status
under section 501(a) but hasn’t filed Form 1023, 1023-EZ, 1024,
or 1024-A to be recognized as tax exempt by the IRS. If this box
is checked, the organization must complete all parts of the Form
990-EZ and any required schedules. An organization that is
required to file an annual information return (Form 990 or
990-EZ) or submit an annual electronic notice (Form 990-N) for a
given tax year (see General Instruction A) must do so even if it
hasn’t filed a Form 1023, 1023-EZ, 1024, or 1024-A with the IRS,
if it claims tax-exempt status.
To qualify for recognition of tax exemption retroactive to the
date of its organization or formation, an organization claiming
tax-exempt status generally must file Form 1023, 1023-EZ,
1024, or 1024-A within 27 months of the end of the month in
which it was legally organized or formed.

TIP filing an individual Form 990-EZ return must use its own
return.

EIN, not that of the central organization or of the group
A section 501(c)(9) voluntary employees' beneficiary

TIP association must use its own EIN and not the EIN of its
sponsor.

Item E. Telephone Number

Enter a telephone number of the organization that members of
the public and government personnel can use during normal
business hours to obtain information about the organization's
finances and activities. If the organization doesn’t have a
telephone number, enter the telephone number of an
organization official who can provide such information.

Item F. Group Exemption Number

Enter the four-digit group exemption number if the organization
is included in a group exemption. The group exemption number
(GEN) is a number assigned by the IRS to the central/parent
organization of a group that has a group exemption letter.
Contact the central/parent organization to ascertain the GEN
assigned.
If the organization is covered by a group exemption letter
as a subordinate organization, the organization should
CAUTION file Form 990-EZ only if the organization isn’t included in
a group return filed by the central/parent organization for the tax
year.

Item C. Name and Address

!

Enter the organization's legal name in the “Name of
organization” box. If the organization operates under a name
different from its legal name, identify its alternate name, after the
legal name, by writing “a.k.a.” (also known as) and the alternate
name of the organization. If multiple a.k.a. names won’t fit in the
box, list them in Schedule O. However, if the organization has
changed its legal name, follow the instructions in Item B for
reporting the name change.

!

CAUTION

The central/parent organization of a group ruling can’t
file a group return with Form 990-EZ but must use Form
990.

Item G. Accounting Method

Include the suite, room, or other unit number after the street
address. If the Post Office doesn’t deliver mail to the street
address and the organization has a P.O. box, enter the box
number instead of the street address.

Indicate the method of accounting used in preparing this return.
See General Instruction C.

Item H. Schedule B

If the organization receives its mail in care of a third party
(such as an accountant or an attorney), enter “C/O” on the street
address line, followed by the third party's name and street
address or P.O. box.

Whether or not the organization enters any amount on line 1 of
Form 990-EZ, the organization must either check the box in Item
H. Schedule B or attach Schedule B (Form 990, 990-EZ, or
990-PF). Failure to either check the box in Item H or file
Schedule B will result in a determination that the return is
incomplete. A tax-exempt organization—other than a section
501(c)(3) organization (including a section 4947(a)(1)
nonexempt charitable trust) or a section 527 political
organization—is no longer required to report the names and
addresses of its contributors on the Schedule B attached to its
Form 990 or Form 990-EZ for tax years ending on or after
December 31, 2018. See Rev. Proc. 2018-38 for more
information about this revised filing requirement. Complete and
file Schedule B if the organization met any of the following
conditions during the tax year.
• It is a section 501(c)(3) organization and met the 33 1/3%
support test of the regulations under sections 509(a)(1) and
170(b)(1)(A)(vi); checks the box on Schedule A (Form 990 or
990-EZ), Part II, line 13, 16a, or 16b; and received from any one
contributor, during the tax year, contributions of the greater of
$5,000 (in money or property) or 2% of the amount on Form
990-EZ, Part I, line 1 (contributions, gifts, grants, and similar
amounts received). An organization filing Schedule B can limit
the contributors it reports on Schedule B using this greater than
$5,000 or 2% threshold only if it checks the box on Schedule A
(Form 990 or 990-EZ), Part II, line 13, 16a, or 16b.
• It is a section 501(c)(3) organization that didn’t meet the 33
1/3% support test of the regulations under sections 509(a)(1)

For foreign addresses, enter information in the following
order: city or town, state or province, the name of the country,
and the postal code. Please don’t abbreviate the country name.
If a change of address occurs after the return is filed, use
Form 8822-B, Change of Address or Responsible Party —
Business, to notify the IRS of the new address.

Item D. Employer Identification Number (EIN)

Use the EIN provided to the organization for filing its Form
990-EZ and federal tax returns. The organization must have only
one EIN. If the organization has more than one EIN and hasn’t
been advised which to use, notify the:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
State what EINs the organization has, the name and address
to which each number was assigned, and the address of the
organization's principal office. The IRS will advise the
organization which number to use.

-8-

2018 Instructions for Form 990-EZ

and 170(b)(1)(A)(vi), and received during the tax year
contributions of $5,000 or more from any one contributor.
• It is a section 501(c)(7), 501(c)(8), or 501(c)(10) organization
that received, during the tax year, (a) contributions of any
amount for use exclusively for religious, charitable, scientific,
literary, or educational purposes; or (b) contributions of $5,000
or more not exclusively for such purposes from any one
contributor.
• It isn’t a section 501(c)(3), 501(c)(7), 501(c)(8), or 501(c)(10)
organization and it received during the tax year contributions of
$5,000 or more from any one contributor. See the Instructions for
Schedule B (Form 990, 990-EZ, or 990-PF) for more information.

!

CAUTION

* To determine if the organization received a contribution of
$5,000 or more from a contributor during the year, add all direct
and indirect gifts, grants, or contributions of $1,000 or more in
cash or property that a contributor made to the organization
during the year. Do not include smaller gifts, grants, or
contributions. See the Instructions for Schedule B (Form 990,
990-EZ, or 990-PF) for more information.

Item I. Website

Enter the organization’s current address for its primary website,
as of the date of filing this return. If the organization doesn’t
maintain a website, enter “N/A” (not applicable).

Do not attach substitutes for Schedule B. Parts I, II, and
III of Schedule B may be photocopied as needed to
provide adequate space for listing all contributors.

Item J. Tax-Exempt Status

Check the applicable box to show the organization's tax-exempt
status. If the organization is exempt under section 501(c) (other
than 501(c)(3)), check the 501(c) box and insert the appropriate
subsection number within the parentheses (for example, “4” for a
501(c)(4) organization). See the chart in Appendix A: Exempt
Organizations Reference Chart. The term “section 501(c)(3)”
includes organizations exempt under sections 501(e), (f), (k),
and (n).

For purposes of Schedule B, contributors include

TIP individuals, fiduciaries, partnerships, corporations,

associations, trusts, and exempt organizations. For
organizations described in section 170(b)(1)(A)(iv) or (vi) or
section 509(a)(2), contributors also include governmental units.

Guidelines for Meeting the
Requirements of Schedule B

Item K. Form of Organization

Check the box describing the organization's legal entity form or
status under state law in its state of legal domicile. Legal entity
forms include corporations, trusts, unincorporated associations,
and other types of entities (for example, partnerships and limited
liability companies (LLCs)).

Section 501(c)(3) Organization Meeting the
331/3% Support Test of Section 170(b)(1)(A)(vi)
If

A section 501(c)(3) organization that met the 331/3%
support test of the regulations under section 509(a)(1) and
section 170(b)(1)(A)(vi) didn’t receive a contribution of the
greater of $5,000 or 2% of the amount on line 1 of Form
990-EZ from any one contributor,*

Then

The organization should check the box in Item H to certify
that it isn’t required to attach Schedule B.

Otherwise

Complete and attach Schedule B.

Section 527 political organizations have different gross
receipts thresholds for Form 990-EZ filing, and aren’t
CAUTION required to submit Form 990-N. See Section 527
political organizations, earlier, for more information.

!

Section 501(c)(7) and 501(c)(15) organizations use
different definitions of gross receipts to determine
CAUTION whether they qualify for tax exemption for the year.
Appendix C defines gross receipts for the purpose of
determining the exempt status of organizations described in
sections 501(c)(7) and 501(c)(15). Do not use the definition of
gross receipts in Appendix C to determine whether the
organization's gross receipts are normally $50,000 or less.

!

Section 501(c)(7), (8), or (10) Organizations
If

A section 501(c)(7), (8), or (10) organization received
neither (1) any contribution or bequest for use exclusively
for religious, charitable, scientific, literary, or educational
purposes, or the prevention of cruelty to children or
animals; nor (2) any contribution of $5,000 or more not
exclusively for such purposes from any one contributor,

Then

The organization should check the box in Item H to certify
that it isn’t required to attach Schedule B.

Otherwise

Complete and attach Schedule B.

Item L. Determining Gross Receipts

Add lines 5b, 6c, and 7b to line 9 to determine gross receipts.
See Appendix B and Appendix C for a discussion of gross
receipts.
Only those organizations with gross receipts of less than
$200,000 and total assets of less than $500,000 at the end of
the tax year can use Form 990-EZ. If the organization doesn’t
meet these requirements, it must file Form 990, unless excepted
under General Instruction B.

!

All Other Form 990-EZ Organizations (General
Rule)
If

The organization didn’t receive a contribution of $5,000 or
more from any one contributor* (reportable on line 1 of the
Form 990-EZ),

Then

The organization should check the box in Item H to certify
that it isn’t required to attach Schedule B.

Otherwise

Complete and attach Schedule B.

CAUTION

Do not use the definition of gross receipts for section
501(c)(7) or 501(c)(15) exemption purposes (discussed
in Appendix C) to determine the amount to enter here.

Part I. Revenue, Expenses, and
Changes in Net Assets or Fund
Balances

All organizations filing Form 990-EZ with the IRS or any state
must complete Part I. Some states that accept Form 990-EZ in
place of their own forms may require additional information. See
Appendix G.
Check the box in the heading of Part I if Schedule O (Form
990 or 990-EZ) contains any information pertaining to this part.

2018 Instructions for Form 990-EZ

-9-

receive contributions and not to sell the merchandise at its retail
value, even though this might produce a profit.

Neither Form 5500 nor Department of Labor (DOL) Forms
LM-2 or LM-3, Labor Organization Annual Report, should be
substituted for the Form 990-EZ, lines 1–17.

Example. An organization holds a dinner, charging $400
per person for the meal. The dinner has a retail value of $160. A
person who purchases a ticket is really purchasing the dinner for
$160 and making a contribution of $240. The contribution of
$240, which is the difference between the buyer's payment and
the retail value of the dinner, is reported on line 1 and again on
line 6b (within the parentheses). The revenue received ($160
retail value of the dinner) is reported on line 6b. Expenses
directly related to the dinner are reported on line 6c. Fundraising
expenses relating to the contribution of $240 are reported on
lines 12 through 16.
If a contributor gives more than $160, that person would be
making a contribution of the difference between the dinner's
retail value of $160 and the amount actually given. Rev. Rul.
67-246, 1967-2 C.B. 104, as distinguished from Rev. Rul.
74-348 1974-2 C.B. 80, explains this principle in detail. See also
the instructions for line 6, and Pub. 526, Charitable
Contributions.

Revenue
Line 1. Contributions, Gifts, Grants, and Similar
Amounts Received
A. What Is Included on Line 1?
• Report amounts received as voluntary contributions; for

example, payments, or the part of any payment, for which the
payer (donor) doesn’t receive fair market value (FMV) from the
recipient (donee) organization. Contributions are reported on
line 1 regardless of whether they are deductible by the
contributor.
• Enter the gross amounts of contributions, gifts, grants, and
bequests that the organization received from individuals, trusts,
corporations, estates, affiliates, foundations, public charities,
and other exempt organizations, or raised by an outside
professional fundraiser.
• Report the value of noncash contributions at the time of the
donation. For example, report the gross value of a donated car
as of the time the car was received as a donation.
• Report all related expenses on lines 12 through 16. Enter on
line 13 professional fundraising fees relating to the gross
amounts of contributions collected in the charity's name by
fundraisers.

At the time of any solicitation or payment, organizations
that are eligible to receive tax-deductible contributions
CAUTION should advise patrons of the amount deductible for
federal tax purposes. See Pub. 1771, Charitable Contributions
Substantiation and Disclosure Requirements.

!

A2. Contributions can arise from fundraising events
when items of only nominal or insubstantial value are
given or offered. If an organization offers goods or services of
only nominal or insubstantial value through a fundraising event,
or distributes free, unordered, low-cost items to patrons, report
the entire amount received for such benefits as a contribution on
line 1. See also the instruction for Line 6b. B1, later, regarding
nominal or insubstantial value. Report all related expenses on
lines 12 through 16.
Benefits have a nominal or insubstantial value if the
organization informs patrons how much of their payment is a
deductible contribution, and either:
1. The FMV of all of the benefits received in connection with
the payment isn’t more than 2% of the payment or $108,
whichever is less; or
2. The payment is $54.00 or more and the only benefits
received in connection with the payment are token items
(bookmarks, calendars, key chains, mugs, posters, T-shirts,
etc.) bearing the organization's name or logo. The cost to the
organization (as opposed to FMV) of all benefits received by a
donor must, in the aggregate, be $10.80 or less.

Reporting line 1 amounts in accordance with ASC 958
generally is acceptable (though not required) for Form 990 and
990-EZ purposes, but the value of donated services or use of
materials, equipment, or facilities may not be reported. However,
state law may require it. An organization that receives a grant to
be paid in future years should, according to ASC 958, report the
grant's present value on line 1. Accruals of present value
increments to the unpaid grant should also be reported on line 1
in future years.
The organization must report any contributions of
conservation easements and other qualified conservation
contributions consistently with how it reports revenue from such
contributions in its books, records, and financial statements.
Report assets contributed to the organization by another
entity in the course of the entity’s liquidation, dissolution, or
termination.
Do not net losses from uncollectible pledges, refunds of
contributions and service revenue, or reversal of grant expenses
on line 1. Rather, report any such items as Other changes in net
assets or fund balances on Part I, line 20, and explain in
Schedule O.
A1. Contributions can arise from fundraising events
when an excess payment is received for items offered.
Fundraising activities relate to soliciting and receiving
contributions. However, fundraising activities such as dinners,
door-to-door sales of merchandise, carnivals, and bingo games
can produce both contributions and revenue. Report as a
contribution, both on line 1 and on line 6b (within the
parentheses), any amount received through such a fundraising
event that is greater than the FMV (retail value) of the
merchandise or services furnished by the organization to the
contributor. Report all gross income from gaming activities on
line 6a.
This situation usually occurs when organizations seek
support from the public through solicitation programs that are in
part fundraising events or activities and are in part solicitations
for contributions. The primary purpose of such solicitations is to

A3. Contributions in the form of membership dues.
Include on line 1 membership dues and assessments to the
extent they are contributions and not payments for benefits
received. (See the instruction for Line 3. C1, later.)
A4. Grants equivalent to contributions. Grants made to
encourage an organization receiving the grant to carry on
programs or activities that further the grant recipient's exempt
purposes are grants that are equivalent to contributions. Report
them on line 1. The grantor can specify which of the recipient's
activities the grant may be used for, such as an adoption
program or a disaster relief project.
A grant is still equivalent to a contribution if the grant recipient
performs a service, or produces a work product, that benefits the
grantor incidentally (but see the instruction for Line 1. B1, later).
A5. Contributions or grants from governmental units.
Whether a payment from a governmental unit is labeled a “grant”
or a “contract” doesn’t determine whether the payment should
be reported on line 1. Rather, a grant or other payment from a
governmental unit is treated as a grant equivalent to a
contribution if its primary purpose is to enable the recipient to
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2018 Instructions for Form 990-EZ

B4. Section 501(c)(9), (17), and (18) organizations.
Section 501(c)(9) organizations provide participants with life,
sick, accident, or other similar benefits. Section 501(c)(17)
organizations provide participants with supplemental
unemployment benefits, and sickness and accident benefits
subordinate to supplemental unemployment benefits. Section
501(c)(18) organizations provide participants with pension(s)
and similar benefits. When such an organization receives
payments from participants, or their employers, to provide these
benefits, report the payments on line 2 as program service
revenue, rather than on line 1 as contributions.

provide a service to, or maintain a facility for, the direct benefit of
the public rather than to serve the direct and immediate needs of
the grantor (even if the public pays part of the expense of
providing the service or facility). (See the instruction for Line 2.
D, later.)
The following are examples of governmental grants and other
payments that are treated as contributions and reported on
line 1.
• Payments by a governmental unit for the construction or
maintenance of library or museum facilities open to the public.
• Payments by a governmental unit to nursing homes to provide
health care to their residents (but not Medicare, Medicaid, and
other similar payments on behalf of specific individuals under the
line 2 instructions).
• Payments by a governmental unit to child placement or child
guidance organizations under government programs to better
serve children in the community.
The following examples illustrate the distinction between
government payments reportable on lines 1 and 2.
• A payment by a governmental agency to a medical clinic to
provide vaccinations to the general public is a contribution
reported on line 1. A payment by a governmental agency to a
medical clinic to provide vaccinations to employees of the
agency is program service revenue reported on line 2.
• A payment by a governmental agency to an organization to
provide job training and placement for disabled individuals is a
contribution reported on line 1. A payment by a governmental
agency to the same organization to operate the agency's internal
mail delivery system is program service revenue reported on
line 2.
A6. Contributions received through other fundraising
organizations. Contributions received indirectly from the public
through solicitation campaigns of federated fundraising agencies
(United Way) are included on line 1.
A7. Contributions received from associated
organizations. Include on line 1 amounts contributed by other
organizations closely associated with the filing organization. This
includes contributions received from a parent organization,
subordinate, or another organization having the same parent.
A8. Contributions from a commercial co-venture. Include
amounts contributed by a commercial co-venture on line 1.
These contributions are amounts received by the organization
for allowing an outside organization (donor) or individual to use
the recipient organization's name in a sales promotion
campaign, such as where the outside organization agrees to
contribute 2% of all sales proceeds to the organization.

C. How to value noncash contributions. Report noncash
contributions on line 1 at FMV. If FMV can’t be readily
determined, use an appraised or estimated value. See also the
instructions for Part II of Schedule B.
D. Schedule of contributors. Attach Schedule B, if required.
See the instructions for Item H.
The information on Form 1099-K, Payment Card and

TIP Third Party Network Transactions, may be useful in

helping you to prepare your return but you aren’t
required to report the information on any specific line of your
return. An organization that receives a Form 1099-K reporting a
gross amount of payment card or third party network payments
received in the tax year should consider these amounts when
reporting contributions and revenue on lines 1 through 8,
according to the instructions for preparing the return. You should
retain all Forms 1099-K with your other records.
Section 501(c)(3) organizations must figure the amount

TIP of contributions according to the above instructions in

preparing the support schedule in Part II or III of
Schedule A (Form 990 or 990-EZ).

Line 2. Program Service Revenue Including
Government Fees and Contracts

Enter the total program service revenue (exempt function
income). Program services are primarily those that form the
basis of an organization's exemption from tax.

A. Examples. A clinic would include on line 2 all of its charges
for medical services (whether to be paid directly by the patients
or through Medicare, Medicaid, or other third-party
reimbursement), laboratory fees, and related charges for
services.
Program service revenue also includes tuition received by a
school; revenue from admissions to a concert or other
performing arts event or to a museum; royalties received as
author of an educational publication distributed by a commercial
publisher; payments received by a section 501(c)(9)
organization from participants or employers of participants for
health and welfare benefits coverage; and registration fees
received in connection with a meeting or convention.

B. What Isn’t Included on Line 1?
B1. Grants that are payments for services aren’t
contributions. A grant is a payment for services, and not a
contribution, when the terms of the grant provide the grantor with
a specific service, facility, or product, rather than providing a
benefit to the general public or that part of the public served by
the grant recipient. The recipient organization would report such
a grant as income on line 2 (program service revenue).
B2. Donations of services or use of property. Do not
include the value of services donated to the organization (such
as the value of donated advertising space, broadcast air time
(including donated public service announcements), or discounts
on services), or of the free use of property (materials, equipment,
or facilities) as contributions on line 1. However, for the optional
reporting of those amounts, see the instructions for donated
services in Part III.
B3. Unreimbursed expenses. Any unreimbursed expenses
of officers, employees, or volunteers don’t belong on the Form
990-EZ. See the explanations of charitable contributions and
employee business expenses in Pub. 526, and Pub. 463, Travel,
Gift, and Car Expenses.
2018 Instructions for Form 990-EZ

B. Program-related investment income. Program service
revenue also includes income from program-related
investments. These investments are made primarily to
accomplish an exempt purpose of the investing organization
rather than to produce income. Examples of program-related
investments are scholarship loans and low-interest loans to
charitable organizations, indigents, or victims of a disaster. See
also the instructions for line 4.
Rental income received from an exempt function is another
example of program-related investment income (below-market
rents from housing leased to low-income persons). For purposes
of this return, report all rental income from an affiliated
organization on line 2.

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Line 4. Investment Income
A. What Is Included on Line 4?

C. Unrelated trade or business activities. Unrelated trade or
business activities (other than fundraising activities that aren’t
regularly carried on) that generate fees for services can also be
program service activities. A social club, for example, should
report as program service revenue the fees it charges both
members and nonmembers for the use of its tennis courts and
golf course.

A1. Interest on savings and temporary cash investments.
Include the amount of interest received from interest-bearing
checking accounts, savings, and temporary cash investments,
such as money market funds, commercial paper, certificates of
deposit, and U.S. Treasury bills or other governmental
obligations that mature in less than 1 year. So-called dividends
or earnings received from mutual savings banks, money market
funds, etc., are actually interest and should be included on this
line.
A2. Dividends and interest from securities. Include
dividends from equity securities (stocks), and interest income
from debt securities and notes and loans receivable, other than
program-related investments. Include amounts received from
payments on securities loans, as defined in section 512(a)(5).
A3. Gross rents. Include gross rental income received
during the year from investment property and any other real
property rented by the organization (other than program-related
investments reported on line 2).
A4. Other investment income. Include, for example, the
organization’s share of investment income from a joint venture,
LLC, or other entity treated as a partnership for federal tax
purposes. Also include royalties received by the organization
from licensing the ongoing use of its property to others (other
than royalties generated as part of the organization's exempt
function, such as royalties received from a publisher for an
educational work authored by the organization, which should be
reported on line 2 as program service revenue). Typically,
royalties are received for the use of intellectual property
(copyrights, patents, and trademarks). Royalties also include
payments to the owner of property for the right to exploit natural
resources on the property, such as oil, natural gas, or minerals.
Do not deduct investment management fees from the amount
of investment income reported on this line, but report these fees
on line 13.

D. Government fees and contracts. Program service revenue
includes income earned by the organization for providing a
government agency with a service, facility, or product that
benefited that government agency directly rather than benefiting
the public as a whole. See the instruction for Line 1. A5, earlier,
for reporting guidelines when payments are received from a
government agency for providing a service, facility, or product
for the primary benefit of the general public.

Line 3. Membership Dues and Assessments

Enter members' and affiliates' dues and assessments that aren’t
contributions.

A. What Is Included on Line 3?
A1. Dues and assessments received that compare
reasonably with the benefits of membership. When the
organization receives dues and assessments the value of which
compares reasonably with the value of benefits provided to
members (whether or not the membership benefits are used by
the members), report such dues and assessments on line 3.
A2. Organizations that generally match dues and
benefits. Organizations described in section 501(c)(5), (6), or
(7) generally provide benefits with a reasonable relationship to
dues, although benefits to members can be indirect.

B. Examples of Membership Benefits
These include subscriptions to publications; newsletters (other
than one about the organization's activities only); free or
reduced-rate admissions to events sponsored by the
organization; use of the organization's facilities; and discounts
on articles or services that both members and nonmembers can
buy. In figuring the value of membership benefits, disregard such
intangible benefits as the right to attend meetings, vote, or hold
office in the organization, and the distinction of being a member
of the organization.

B. What Isn’t Included on Line 4?
B1. Capital gains dividends and unrealized gains and
losses. Do not include on this line any capital gains dividends.
They are reported on line 5. Also don’t include unrealized gains
and losses on investments carried at market value. See the
instructions for line 20.
B2. Exempt function revenue (program service). Do not
include on line 4 amounts that represent income from an exempt
function (program service). Report these amounts on line 2 as
program service revenue. Report expenses related to this
income on lines 12 through 16.

C. What Isn’t Included on Line 3?

C1. Dues or assessments received that exceed the value
of available membership benefits. Dues received by an
organization, to the extent they exceed the monetary value of the
membership benefits available to the dues payer, are a
contribution that should be reported on line 1.
C2. Dues received primarily for the organization's
support. If a member pays dues primarily to support the
organization's activities, and not to obtain benefits of more than
nominal or insubstantial monetary value, those dues are a
contribution to the organization includible on line 1.

Exempt function rental income. An organization whose
exempt purpose is to provide low-rental housing to persons with
low income receives exempt function income from such rentals.
An organization receives exempt function income if it rents or
sublets rental space to a tenant whose activities are related to
the filing organization's exempt purpose. Report rental income
received in these instances on line 2 and not on line 4. Only for
purposes of completing this return, treat income from renting
property to affiliated exempt organizations as exempt function
income and include that income on line 2 as program service
revenue.

Example. M is an organization whose primary purpose is to
support the local symphony orchestra. Members have the
privilege of purchasing subscriptions to the symphony's annual
concert series before they go on sale to the general public, but
must pay the same price as any other member of the public.
They also are entitled to attend a number of rehearsals each
season without charge. Under these circumstances, M's receipts
from members are contributions reported on line 1.

Other program-related investments. Investment income from
program-related investments should be reported on line 2. See
the line 2 instructions for a discussion of program-related
investments. Gains or losses from the sale of program-related
investment assets are reported on line 5.

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2018 Instructions for Form 990-EZ

Lines 5a Through 5c. Gains (or Losses) From
Sale of Assets Other Than Inventory
A. What Is Included on Line 5?

Many games of chance are taxable. Income from bingo
games is generally not subject to the tax on unrelated business
income if the games meet the legal definition of bingo. For a
bingo game to meet the legal definition of bingo, wagers must be
placed, winners must be determined, and prizes or other
property must be distributed in the presence of all persons
placing wagers in that game.

Report on line 5a all sales of securities and sales of all other
types of investments (real estate, royalty interests, or partnership
interests), as well as sales of all other non-inventory assets
(program-related investments and fixed assets used by the
organization in its related and unrelated activities). Also report
capital gains dividends; the organization’s share of capital gains
and losses from a joint venture, LLC, or other entity treated as a
partnership for federal tax purposes; and capital gains
distributions from trusts.

A wagering game that doesn’t meet the legal definition of
bingo doesn’t qualify for the exclusion from unrelated business
income, regardless of its name. For example, “instant bingo,” in
which a player buys a pre-packaged bingo card with pull tabs
that the player removes to determine if he or she is a winner,
doesn’t qualify. See Pub. 598, Tax on Unrelated Business
Income of Exempt Organizations; Pub. 3079, Tax-Exempt
Organizations and Gaming; and Form 990-T.

Total the cost or other basis (less depreciation) and selling
expenses and enter the result on line 5b. On line 5c, enter the
net gain or loss.

Line 6b. Fundraising Events

For reporting sales of securities on Form 990-EZ, the
organization can use the more convenient way to figure the
organization's gain or loss from sales of securities by subtracting
from the sales price the average-cost basis of the particular
security sold. However, the average-cost basis isn’t used to
figure the gain or loss from sales of securities reportable on
Form 990-T.

Enter the gross income from all fundraising events and activities,
such as dinners, dances, carnivals, concerts, sports events,
auctions, and door-to-door sales of merchandise.
Fundraising events and activities only incidentally accomplish
an exempt purpose. Their sole or primary purpose is to raise
funds to finance the organization's exempt activities. They don’t
include events or activities that substantially further the
organization's exempt purpose even if they also raise funds.
They don’t include activities regularly carried on. Fundraising
events don’t include gaming, gross income from which is
reported on line 6a.

B. What Isn’t Included on Line 5?
Do not include on line 5 any unrealized gains or losses on
securities that are carried in the books of account at market
value. See the instructions for line 20.

Example. An organization formed to promote and preserve
folk music and related cultural traditions holds an annual folk
music festival featuring concerts, handicraft demonstrations, and
similar activities. Because the festival directly furthers the
organization's exempt purpose, income from ticket sales should
be reported on line 2 as program service revenue.

C. Books and Records
The organization should maintain books and records to
substantiate information regarding any securities or other assets
sold for which market quotations weren’t published or weren’t
readily available. The recorded information should include:
• A description of the asset;
• Date acquired;
• Whether acquired by donation or purchase;
• Date sold and to whom sold;
• Gross sales price;
• Cost, other basis, or if donated, value at time acquired;
• Expense of sale and cost of improvements made after
acquisition; and
• Depreciation since acquisition, if depreciable property.

Fundraising events and activities raise funds by offering
goods or services that have more than a nominal or insubstantial
value (compared to the price charged) for a payment that is
more than the direct cost of those goods or services. See the
instructions for Line 1. A1 and A2, earlier, for a discussion on
contributions reportable on line 1 and revenue reportable on
line 6b.
The fact that tickets, advertising, or solicitation materials refer
to a required payment as a donation or contribution doesn’t
control how these payments should be reported on Form
990-EZ.

Line 6a. Gaming
Report gross income from gaming in line 6a if the organization
conducted directly, or through a promoter, any amount of
gaming during the year. Report the gross income from all
gaming activities (other than gaming that is incidental to a
fundraising event such as a dinner/dance), whether or not
regularly carried on, on line 6a.

The gross income from fundraising events must be reported
in the right-hand column on line 6b without reduction for cash or
noncash prizes, cost of goods sold, compensation, fees, or other
expenses.

A. What Is Included on Line 6b?

Gaming includes (but isn’t limited to) bingo, pull tabs, instant
bingo (including satellite and progressive bingo), Texas Hold-Em
Poker and other card games, raffles, scratch-offs, charitable
gaming tickets, break-opens, hard cards, banded tickets, jar
tickets, pickle cards, Lucky Seven cards, Nevada Club tickets,
casino nights/Las Vegas nights (other than events not regularly
carried on in which participants can play casino-style games but
the only prizes or auction items provided to participants are
noncash items that were donated to the organization, which
events are fundraising events), and coin-operated gambling
devices. Coin-operated gambling devices include slot machines,
electronic video slot or line games, video poker, video blackjack,
video keno, video bingo, video pull tab games, etc.
2018 Instructions for Form 990-EZ

Gross revenue/contributions. When an organization
receives payments for goods or services offered through a
fundraising event, enter the following.
1. As gross revenue, on line 6b (in the right-hand column),
the retail value of the goods or services.
2. As a contribution, on both line 1 and line 6b (within the
parentheses), any amount received that exceeds the retail value
of the goods or services given.
Example. At a fundraising event, an organization received
$100 in gross receipts for goods valued at $40. The organization
entered gross revenue of $40 on line 6b and entered a
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overhead expenses. For purposes of Part I, the organization
may include as cost of donated goods their FMV at the time of
acquisition. Marketing and distribution expenses aren’t includible
in cost of goods sold but are reported on lines 12 through 16.

contribution of $60 on both line 1 and within the parentheses on
line 6b. The contribution was the difference between the gross
revenue of $40 and the gross receipts of $100.

B. What Isn’t Included on Line 6b?

Line 8. Other Revenue

B1. Sales or gifts of goods or services of only nominal or
insubstantial value. If the goods or services offered at the
fundraising event have only nominal or insubstantial value,
include all of the receipts as contributions on line 1 and all of the
related expenses on lines 12 through 16.
B2. Sweepstakes, raffles, and lotteries. Report gross
income from gaming on line 6a. Report as a contribution, on
line 1, the proceeds of solicitation campaigns in which the
names of contributors and other respondents (who weren’t
required to make a minimum payment) are entered in a drawing
for prizes.
Where a minimum payment is required for each raffle or
lottery entry and prizes of only nominal or insubstantial value are
awarded, report any amount received as a contribution. Report
the related expenses on lines 12 through 16.
B3. Activities that generate only contributions aren’t
fundraising events. An activity that generates only
contributions, such as a solicitation campaign by mail, isn’t a
fundraising event. Any amount received should be included on
line 1 as a contribution. Related expenses are reportable on
lines 12 through 16.

Enter the total income from all sources not covered by lines 1
through 7. Examples of line 8 income are interest on notes
receivable not held as investments or as program-related
investments (defined in the line 2 instructions); interest on loans
to officers, directors, trustees, key employees, and other
employees; and royalties that aren’t investment income or
program service revenue.

Expenses:
Line 10. Grants and Similar Amounts Paid
A. What Is Included on Line 10?
Enter the amount of actual grants and similar amounts paid to
individuals and organizations selected by the filing organization.
Include scholarship, fellowship, and research grants to
individuals.
A1. Specific assistance to individuals. Include on this line
the amount of payments to, or for the benefit of, particular clients
or patients, including assistance by others at the organization's
expense.
A2. Payments, voluntary awards, or grants to affiliates.
Include on line 10 certain types of payments to organizations
affiliated with (closely related to) the filing organization. These
payments include predetermined quota support and dues
payments by local organizations to their state or national
organizations.

C. Attach Schedule G, Parts II and III
If the organization reports more than $15,000 on line 6a, then it
must complete Part III (Gaming) of Schedule G (Form 990 or
990-EZ). If the sum of the organization's gross income and
contributions from fundraising events (including the amounts
reported on line 6b and in the parentheses for line 6b) is greater
than $15,000, then it must complete Schedule G, Part II
(Fundraising Events). Organizations filing Form 990-EZ aren’t
required to complete Schedule G, Part I (Fundraising Activities).

!

CAUTION

If the organization uses Form 990-EZ for state reporting
purposes, distinguish on Schedule O between payments
to affiliates and awards and grants. See Appendix G.

B. What Isn’t Included on Line 10?

Lines 6c and d. Direct Expenses and Net Income
or (Loss) From Gaming and Fundraising Events

B1. Administrative expenses. Do not include on this line
expenses made in selecting recipients or monitoring compliance
with the terms of a grant or award. Enter those expenses on
lines 12 through 16.
B2. Purchases of goods or services from affiliates. Do
not report the cost of goods or services purchased from affiliates
on line 10. Report these expenses on lines 12 through 16.
B3. Membership dues paid to another organization.
Report membership dues that the organization pays to another
organization (other than an affiliated organization) for general
membership benefits, such as regular services, publications,
and materials, on line 16.

Report on line 6c direct expenses related to gaming activities
and direct expenses attributable to the organization's provision
of goods or services from which it derived gross income at a
fundraising event. Do not report fundraising expenses
attributable to contributions reported on line 1. These expenses
are reportable on lines 12 through 16. If an expense is included
on line 6c, don’t report it again on line 7b.
To figure net income or (loss) on line 6d, add lines 6a and 6b,
then subtract line 6c.

Lines 7a Through 7c. Gross Sales of Inventory

C. Grantee List on Schedule O

Line 7a. Sales of inventory. Include on line 7a the gross sales
(less returns and allowances) of inventory items, whether the
sales activity is an exempt function or an unrelated trade or
business. Inventory items are goods the organization makes to
sell to others, or that it buys for resale. Include all inventory sales
except sales of goods at fundraising events, which are
reportable on line 6. Do not include on line 7 sales of
investments on which the organization expected to profit by
appreciation and sale; report sales of these investments on
line 5.

List on Schedule O each grantee organization or individual to
whom the organization made grants (or paid similar amounts) in
excess of $5,000 during the organization's tax year. For each
grantee, list:
• Each class of activity;
• The grantee's name and address (for grantee organizations,
not grantee individuals);
• The amount given (aggregate amount of grants and payments
to or for the benefit of the grantee during the organization's tax
year); and
• The relationship of the grantee (for grants to individuals), if the
relationship is by blood, marriage, adoption, or employment
(including employees’ children), control, or ownership, to any
person or corporation with an interest in the organization, such

Line 7b. Cost of goods sold. On line 7b, report the cost of
goods sold related to sales of such inventory. The usual items
included in cost of goods sold are direct and indirect labor,
materials and supplies consumed, freight-in, and a proportion of
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2018 Instructions for Form 990-EZ

Complete Form 5500 if the organization is required to file

as a creator, donor, director, trustee, officer, key employee,
related organization, etc.

TIP it.

If the individual grantee is related to a grantor or
contributor to the organization, then don’t provide the
CAUTION name of the grantor or contributor. Instead, identify such
persons generically as “grantee” and as “grantor” or
“contributor.”

!

Also include in the total on line 12 the amount of federal,
state, and local payroll taxes for the year that are imposed on the
organization as an employer. This includes the employer's share
of social security and Medicare taxes, federal unemployment tax
(FUTA), state unemployment compensation tax, and other state
and local payroll taxes. Taxes withheld from employees' salaries
and paid over to the various governmental units (such as federal
and state income taxes and the employees' share of social
security and Medicare taxes) are part of the employees' salaries
included on line 12. Report expenses paid or incurred for
employee events such as a picnic or holiday party on this line.
For more information, see Pub. 15 (Circular E), Employer's Tax
Guide.

If any related organization (see the line 49 instructions for
definition of “related organization”) received a payment reported
on line 10, then so indicate, and specify the purpose of the
payment.
Classify activities on this schedule in more detail than by
using broad terms such as charitable, educational, religious, or
scientific. For example, identify payments to affiliates; payments
for nursing services; fellowships; and payments for food, shelter,
or medical services for indigents or disaster victims.

Compensation for line 12 is reported based on the

TIP accounting method and tax year used by the

Colleges, universities, and primary and secondary schools
reporting scholarships or other financial assistance can instead
include a statement in Schedule O that (a) groups each type of
financial aid provided, (b) indicates the number of individuals
who received the aid, and (c) specifies the aggregate dollar
amount.

organization, whereas compensation for Part IV, List of
Officers, Directors, Trustees, and Key Employees, and Part VI,
lines 50 and 51 (compensation of highest compensated
employees and independent contractors), is reported for the
calendar year ending with or within the organization’s fiscal year.

If an organization gives property other than cash and
measures an award or grant by the property's FMV, also show
on this schedule:
• A description of the property,
• The book value of the property,
• How the book value was determined,
• How the FMV was determined, and
• The date of the gift.

Line 13. Professional Fees and Other Payments to
Independent Contractors
Enter the total amount of legal, accounting, auditing, other
professional fees (such as fees for fundraising or investment
services), and related expenses charged by outside firms and
individuals who aren’t employees of the organization.
Do not include any penalties, fines, or judgments imposed on
the organization as a result of legal proceedings; report and
identify those expenses on line 16. Report on line 12 fees paid to
directors and trustees. Also report on line 12 compensation to
employees that provide fundraising, legal, accounting, or other
professional services as part of their employment. Report broker
fees/commissions as sales expenses on line 5b.

Any difference between a property's FMV and book value
should be recorded in the organization's books of account and
on line 20.

Line 11. Benefits Paid to or for Members
For an organization that gives benefits to members or
dependents (such as organizations exempt under section 501(c)
(8), (9), or (17)), enter the amounts paid for or paid to obtain
insurance that provides:
• Death, sickness, hospitalization, or disability benefits;
• Unemployment compensation benefits; and
• Other benefits, including patronage dividends paid by 501(c)
(12) organizations to their members.
Report on line 12, rather than line 11, the cost of
employment-related benefits (such as health insurance) that the
organization gives its officers and employees.

If the organization is able to distinguish between fees paid for
independent contractor services and expense payments or
reimbursements to the contractor(s), report the fees paid for
services on line 13 and the expense payments or
reimbursements on lines 14–16, as applicable. If the
organization is unable to distinguish between service fees and
expense payments or reimbursements to independent
contractors, report all such amounts on line 13.
If your organization pays $600 or more to persons not

TIP treated as employees, you may be required to file Form

1099-MISC, Miscellaneous Income. For more
information, see the Instructions for Form 1099-MISC.

Line 12. Salaries, Other Compensation, and
Employee Benefits
Enter the total salaries and wages paid to all officers and
employees and payments made to directors and trustees,
including compensation reported on Forms W-2 and 1099.
Include all other forms of income and benefits received from the
organization during the year, such as the employer’s share of
deferrals (for unfunded plans) and contributions the organization
paid to qualified and nonqualified pension and deferred
compensation plans, and the employer's share of contributions
to employee benefit programs (such as insurance, health, and
welfare programs) that aren’t an incidental part of a pension
plan.

2018 Instructions for Form 990-EZ

Line 14. Occupancy, Rent, Utilities, and
Maintenance
Enter the total amount paid or incurred for the use of office space
or other facilities, including rent; mortgage interest; heat, light,
power, and other utilities; outside janitorial services; real estate
taxes and property insurance attributable to rental property; and
similar expenses.
These expenses relate to real property actually occupied by
the organization, whether as tenant or owner, or used in the
conduct of exempt functions (such as low-income rental
housing). Report on line 16 expenses relating to real property
used for investment purposes. If the organization occupies part
-15-

• Any difference between FMV and book value of property
given as an award or grant.

of the property and leases a part to others, then expenses must
be reasonably allocated between occupancy-related and
investment-related expenses, and reported accordingly on lines
14 and 16.

See General Instruction C regarding the reporting of a section
481(a) adjustment to conform to ASC 958.

If the organization records depreciation on property it
occupies, enter the total for the year. For an explanation of
acceptable methods for figuring depreciation, see Pub. 946,
How To Depreciate Property.

Part II. Balance Sheets

Every organization that files Form 990-EZ must complete
columns (A) and (B) of Part II of the return and can’t submit a
substitute balance sheet. Failure to complete Part II can result in
penalties for filing an incomplete return. If there is no amount to
report in column (A), Beginning of year, enter a zero in that
column.

Report on line 14 or 16 rental expenses for rental income
reported on lines 2 and 4. Do not decrease rental expenses
reported on line 14 or 16 by any rental income received from
renting or subletting rented space. See the instructions for lines
2 and 4 to determine if the income is reportable as exempt
function income or investment income.

Check the box in the heading of Part II if Schedule O (Form
990 or 990-EZ) contains any information pertaining to this part.
Some states require more information. See Appendix G for
more information about completing a Form 990-EZ to be filed
with any state or local government agency.

Line 15. Printing, Publications, Postage, and
Shipping
Enter the printing and related costs of producing the filing
organization's own newsletters, leaflets, films, and other
informational materials as well as the cost of outside mailing
services on line 15. Also include the cost of any purchased
publications as well as postage and shipping costs not
reportable on line 5b, 6c, or 7b. Do not include any expenses,
such as salaries, for which a separate line is provided.

Line 22. Cash, Savings, and Investments

Include all interest and non-interest bearing accounts (petty cash
funds, checking accounts, savings accounts, money market
funds, commercial paper, certificates of deposit, U.S. Treasury
bills, and other government obligations). Also include the book
value of securities held as investments, and all other investment
holdings including land and buildings held for investment. Report
the income from these investments on line 4; report income from
program-related investments on line 2.

Line 16. Other Expenses
Report expenses here that aren’t reportable on lines 10 through
15. Include here such expenses as penalties, fines, and
judgments; unrelated business income taxes; insurance,
interest, depreciation, and real estate taxes not reported as
occupancy expenses; travel and transportation costs; and
expenses for conferences, conventions, and meetings. Do not
report on this line payments made by organizations exempt
under section 501(c)(8), (9), or (17) to obtain insurance benefits
for members. Report those expenses on line 11.

Line 23. Land and Buildings

Enter the book value (cost or other basis less accumulated
depreciation) of all land and buildings owned by the organization
and not held for investment.

Line 24. Other Assets

Some states that accept Form 990-EZ in satisfaction of their
filing requirements may require that certain types of
miscellaneous expenses be itemized. See Appendix G.

Enter total of other assets such as accounts receivable,
inventories, prepaid expenses, and the organization’s share of
assets in any joint ventures, LLCs, and other entities treated as a
partnership for federal tax purposes. Also, include a description
of the assets in Schedule O.

Net Assets

Line 25. Total Assets

Enter amount of total assets. If the end-of-year total assets
entered in column (B) are $500,000 or more, Form 990 must be
filed instead of Form 990-EZ.

Line 18. Excess or (Deficit) for the Year
Enter the difference between lines 9 and 17. If line 17 is more
than line 9, enter the difference in parentheses or as a negative
number with a minus sign.

Line 26. Total Liabilities

Liabilities include such items as accounts payable, grants
payable, mortgages or other loans payable, and deferred
revenue (revenue received but not yet earned).

Line 19. Net Assets or Fund Balances at Beginning
of Year

Line 27. Net Assets or Fund Balances

Enter on line 19 the end-of-year amount from the balance sheet
on the prior year's return.

Subtract line 26 (total liabilities) from line 25 (total assets) to
determine net assets. Enter this net asset amount on line 27.
The amount entered in column (B) must agree with the net asset
or fund balance amount on line 21.

Line 20. Other Changes in Net Assets or Fund
Balances

States that accept Form 990-EZ as their basic report form
may require a separate statement of changes in net assets. See
Appendix G.

Explain in Schedule O any changes in net assets or fund
balances between the beginning and end of the organization's
tax year that aren’t accounted for by the amount on line 18.
Include items here such as:
• Adjustments of earlier years' activity (such as losses on
uncollectible pledges, refunds of contributions and program
service revenue, and reversal of grant expenses);
• Unrealized gains and losses on investments carried at market
value; and

Part III. Statement of Program Service
Accomplishments
Check the box in the heading of Part III if Schedule O (Form 990
or 990-EZ) contains any information relating to this part.

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2018 Instructions for Form 990-EZ

Part IV. List of Officers, Directors,
Trustees, and Key Employees

A program service is a major (usually ongoing) objective of an
organization, such as adoptions, recreation for the elderly,
rehabilitation, or publication of journals or newsletters.
Step
1
2

3

4

5

6

Check the box in the heading of Part IV if Schedule O (Form 990
or 990-EZ) contains any information relating to this part.

Action
Enter the organization's primary exempt purpose.
All organizations must describe their program service
accomplishments for each of their three largest program
services (as measured by total expenses incurred).
• Describe program service accomplishments
through measurements such as clients served,
days of care, number of sessions or events held, or
publications issued.
• Describe the activity's objective, for both this time
period and the longer-term goal, if the output is
intangible, such as in a research activity.
• Give reasonable estimates for any statistical
information if exact figures aren’t readily available.
Indicate that this information is estimated.
• Be clear, concise, and complete in the description.
Avoid attaching brochures, newsletters, newspaper
articles about the organization, etc.
Public interest law firm. A public interest law firm
exempt under section 501(c)(3) or 501(c)(4) must list in
Schedule O all the cases in litigation or that have been
litigated during the year. For each case, describe the
matter in dispute and explain how the litigation will
benefit the public generally. Also enter the fees sought
and recovered in each case. See Rev. Proc. 92-59,
1992-2 C.B. 411.
Expenses and grants. For each program service
reported on lines 28–31, section 501(c)(3) and 501(c)(4)
organizations must enter, in the Expenses column, the
total expenses included on line 17 for that program
service. These organizations also must enter, in the
Grants space for each program service, the total grants
and similar amounts reported on line 10 for that program
service. If the amount of grants entered includes foreign
grants, check the box to the left of the Expenses column.
For all other organizations, entering expenses and
grants and checking the foreign grants box is optional.
Describe in Schedule O the organization's other program
services.
• The detailed information required for the three
largest services isn’t necessary for this schedule.
• However, section 501(c)(3) and (4) organizations
must show the expenses and grants attributable to
their program services.
The organization can report the amount of any donated
services, or any donated use of materials, equipment, or
facilities it received or utilized for a specific program
service.
• Disclose the applicable amounts of any donated
services, etc., on the lines for the narrative
description of the appropriate program service.
• Do not include these amounts in the expense
column in Part III.
• See the instruction for Line 1. B2, earlier, regarding
donations of services or use of property.

2018 Instructions for Form 990-EZ

List each person who was an officer, director, trustee, or key
employee (defined below) of the organization at any time during
the organization's tax year, even if they didn’t receive any
compensation from the organization.
Officer. An officer is a person elected or appointed to manage
the organization's daily operations, such as a president, vice
president, secretary, or treasurer. The officers of an organization
are determined by reference to its organizing document, bylaws,
or resolutions of its governing body, but at a minimum include
those officers required by applicable state law.
Director or trustee. A director or trustee is a member of the
organization's governing body, but only if the member has voting
rights. The governing body is the group of persons authorized
under state law to make governance decisions on behalf of the
organization and its shareholders or members, if applicable. The
governing body is, generally speaking, the board of directors
(sometimes referred to as board of trustees) of a corporation or
association, or the board of trustees of a trust (sometimes
referred to simply as the trustees, or trustee, if only one trustee).
Key employee. A key employee is any person having
responsibilities or powers similar to those of officers, directors,
or trustees. The term includes the chief management and
administrative officials of an organization (such as an executive
director or chancellor). A chief financial officer and the officer in
charge of the administration or program operations are both key
employees if they have the authority to control the organization's
activities, its finances, or both.
Enter a zero in columns (c), (d), and (e) if no reportable
compensation or other compensation was paid during the year
or deferred for payment to a future year.
Enter all forms of cash and noncash compensation received
by each listed officer, director, trustee, and key employee,
whether paid currently or deferred.
If the organization pays any other person, such as a
management services company, for the services provided by
any of the organization's officers, or an employee leasing
company, or a professional employer organization (whether or
not certified under the new Voluntary Certification Program for
Professional Employer Organizations at IRS.gov/For-Tax-Pros/
Basic-Tools/Certified-Professional-Employer-Organization),
directors, trustees, or key employees, report the compensation
and other items in Part IV as if the organization had paid the
officers, directors, trustees, and key employees directly.
A failure to fully complete Part IV can subject both the
organization and the individuals responsible for such failure to
penalties for filing an incomplete return. See General Instruction
G. In particular, entering the phrase on Part IV, “Information
available upon request,” or a similar phrase, isn’t acceptable.
Form 941 must be filed to report income tax withholding and
social security and Medicare taxes. The organization must also
file Form 940, Employer's Annual Federal Unemployment
(FUTA) Tax Return, to report federal unemployment tax, unless
the organization isn’t subject to these taxes. See Pub. 15 for
more information.
Amounts paid or accrued by certain other organizations
treated as paid or accrued by the filing organization. Treat
as paid, accrued, or held directly by the organization any
amounts paid or accrued under a deferred compensation plan,
or held by a deferred compensation trust, that is established,
sponsored, or maintained by the organization.
-17-

compensation, if any, generally is required to be reported on
Form 1099-MISC. See Regulations section 31.3401(c)-1(f).

Common paymaster or payroll/reporting agent. Treat
amounts paid by a common paymaster (as defined in
Regulations section 31.3121(s)-1(b)(2)) or a payroll or reporting
agent (which is or should be appointed by the organization on
Form 2678, Employer/Payer Appointment of Agent, or
authorized by the organization on Form 8655, Reporting Agent
Authorization, to perform certain employment tax services on
behalf of the organization) for services performed for the
organization as if the organization had paid such amounts
directly, and report these amounts in the appropriate columns in
Part IV.

For employees, such as certain members of the clergy and
religious workers who aren’t subject to social security and
Medicare taxes as employees, box 5 of Form W-2 can be zero or
less than the amount in Form W-2, box 1. In those cases, the
amount required to be reported in box 1 of Form W-2 must be
reported as reportable compensation in column (c).
Column (d). Report the following deferred compensation and
benefits.
1. Tax-deferred contributions by the employer to a qualified
defined-contribution retirement plan.
2. The annual increase or decrease in actuarial value of a
qualified defined benefit plan, whether or not funded or vested.
3. The value of health benefits provided by the employer, or
paid by the employee with pre-tax dollars, that isn’t included in
reportable compensation, including the value of:
• Payments of health benefit plan premiums,
• Medical reimbursement and flexible spending programs, and
• Health coverage (rather than actual benefits paid) provided by
an employer's self-insured or self-funded arrangement.
Health benefits include medical, dental, optical, drug, and
medical equipment benefits. They don’t include disability or
long-term care insurance premiums or allocated benefits for this
purpose.
4. Tax-deferred contributions by the employer and
employee to a funded nonqualified defined contribution plan,
and deferrals under an unfunded nonqualified defined
contribution plan, whether or not such plans are vested or
subject to a substantial risk of forfeiture.
5. The annual increase or decrease in actuarial value of a
nonqualified defined benefit plan, whether or not funded, vested,
or subject to a substantial risk of forfeiture.

Column (a)

For each person required to be listed, enter the name in the top
of each row and the person's title or position with the
organization in the bottom of the row. If the person had more
than one title or position, list all (for instance, president and
director). List persons in the following order: individual trustees
or directors, institutional trustees, officers, and key employees.
Up to 12 persons can be reported on the Form 990-EZ, Part
IV table. If more space is needed to enter additional persons,
use as many duplicates of the Part IV table as are needed.

Column (b)

For each person listed in column (a), report an estimate of the
average hours per week the person devoted to the organization
during the year. Entry of a specific number of hours per week is
required for a complete answer. Enter “-0-” if applicable. Do not
include statements such as “as needed,” “as required,” or “40+.”
If the average is less than 1 hour per week, then the organization
can enter a decimal rounded to the nearest tenth (for example,
0.2 hours per week).

Columns (c)–(e)
All compensation reporting is based on the calendar year ending
with or within the organization's tax year. For example, if a
fiscal-year organization's tax year is the 12-month period
beginning July 1, 2018, and ending June 30, 2019, the
organization must report compensation for the calendar year
ending December 31, 2018.

Reasonable estimates can be used if precise cost figures aren’t
readily available to determine column (d) amounts.
Column (e). Enter both taxable and nontaxable fringe
benefits, but don’t include compensation reported in column (c)
or (d) or the following.
1. Working condition fringe benefits described in section
132(d).
2. Expense reimbursements and allowances under an
accountable plan described in Regulations section 1.62-2(c)(2).
3. De minimis fringe benefits described in section 132(e).

Note. Do not report the same item of compensation in more
than one column of Part IV for the calendar year ending with or
within the tax year.
Column (c). Enter the person's reportable compensation.
Reportable compensation is:
• For officers and other key employees—amounts required to
be reported in box 1 or 5 of Form W-2 (whichever amount is
greater);
• For directors and individual trustees—amounts required to be
reported in box 6 or box 7 of Form 1099-MISC for director
services and other independent contractor services to the
organization, plus box 1 or 5 of Form W-2 (whichever amount is
greater) if also compensated as an officer or employee; and
• For institutional trustees (such as banks or trust
companies)—fees for services paid under a contractual
agreement or statutory entitlement.
If the organization didn’t file a Form 1099-MISC because the
amounts paid were below the threshold reporting requirement,
then include and report the amount actually paid.

Include amounts that the recipients must report as income on
their separate income tax returns. Examples include amounts for
which the recipient didn’t account to the organization or
allowances that were more than the payee spent on serving the
organization. Include payments made under indemnification
arrangements, the value of the personal use of housing,
automobiles, or other assets owned or leased by the
organization (or provided for the organization's use without
charge), as well as any other taxable and nontaxable fringe
benefits. See Pub. 525, Taxable and Nontaxable Income, for
more information.
$10,000-per-item exception. The organization may exclude
from reporting in column (e) any item of “other compensation”
given to a person listed in Part IV if its total value is less than
$10,000 for the calendar year ending with or within the
organization's tax year.
Short year and final returns. For a short year return in
which there is no calendar year that ends with or within the short
year, leave columns (c), (d), and (e) blank and don’t report any
highest compensated employees or highest compensated
independent contractors (because such persons are determined
according to compensation received in the calendar year ending

Corporate officers are considered employees for

TIP purposes of Form W-2 reporting, unless they perform no

services as officers, or perform only minor services and
neither receive nor are entitled to receive, directly or indirectly,
any compensation. Corporate directors are considered
independent contractors, not employees, and director

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2018 Instructions for Form 990-EZ

• The organization's name;
• The organization's exempt purposes or mission;
• The number, composition, qualifications, authority, or duties

with or within the tax year for which the return is filed), unless the
return is a final return. If the return is a final return, report in
column (c) the compensation that is reportable compensation on
Forms W-2 and Forms 1099 for the short year, from both the
filing organization and related organizations, whether or not
Forms W-2 or Forms 1099 have been filed yet to report such
compensation. Report health benefits, contributions to employee
benefit plans, and other deferred compensation for the short
year in column (d), and other compensation for the short year in
column (e).

of the governing body's voting members;
• The number, composition, qualifications, authority, or duties
of the organization's officers or key employees;
• The role of the organization's members in governance;
• The distribution of assets upon dissolution;
• The provisions to amend the organizing or enabling document
or bylaws;
• The quorum, voting rights, or voting approval requirements of
the governing body members or the organization's stockholders
or membership;
• The policies or procedures contained within the organizing
documents or bylaws regarding compensation of officers,
directors, trustees, or key employees; conflicts of interest;
whistleblowers; or document retention or destruction; and
• The composition or procedures of an audit committee
contained within the organizing document or bylaws.

Part V. Other Information
Required Statements

1. Schedule A. Section 501(c)(3) organizations must
complete and attach Schedule A (Form 990 or Form 990-EZ).
2. Statement regarding personal benefit contract. If, in
connection with a transfer to or for the use of the organization,
the organization directly or indirectly pays premiums on any
personal benefit contract, or there is an understanding or
expectation that any person will directly or indirectly pay such
premiums, the organization must do the following.
• Attach a statement describing the organization's involvement
with the personal benefit contract(s).
• Report on Form 8870, Information Return for Transfers
Associated With Certain Personal Benefit Contracts, the
premiums that the organization paid, and the premiums paid by
others but treated as paid by the organization.
• Report and pay an excise tax, equal to premiums paid, on
Form 4720, Return of Certain Excise Taxes Under Chapters 41
and 42 of the Internal Revenue Code.

Examples of insignificant changes made to organizing or
governing documents that aren’t required to be reported here
include changes to the organization's registered agent with the
state and to the required or permitted number or frequency of
governing body or member meetings.
Describe significant changes on Schedule O (Form 990 or
990-EZ), but don’t attach a copy of the amendments or
amended document to Form 990-EZ (or recite the entire
amended document verbatim), unless such amended
documents reflect a change in the organization's name. See the
instructions for Item B, earlier, regarding attachments required in
the event of a change in the organization's name, which
attachments must be conformed copies of the original
documents.

A personal benefit contract is generally any life insurance,
annuity, or endowment contract that benefits, directly or
indirectly, the transferor, a member of the transferor's family, or
any other person designated by the transferor (other than an
organization described in section 170(c)). See section 170(f)
(10); Notice 2000-24, 2000-1 C.B. 952; and Announcement
2000-82, 2000-2 C.B. 385.

A conformed copy is one that agrees with the original
document and all amendments to it. If the copies aren’t signed,
they must be accompanied by a written declaration signed by an
officer authorized to sign for the organization, certifying that they
are complete and accurate copies of the original documents.
Photocopies of articles of incorporation showing the certification
of an appropriate state official need not be accompanied by such
a declaration. See Rev. Proc. 68-14, 1968-1 C.B. 768, for
details.

Line 33. Change in Activities

Describe in Schedule O any significant activities that the
organization conducted prior to the end of the tax year that it
hasn’t previously reported to the IRS on Form 990-EZ or Form
990. Also describe significant activities that were discontinued. If
the organization has never filed a Form 990 or 990-EZ, answer
“No.”

In some cases, if the exempt organization changes its legal
structure, such as from a trust to a corporation, the new legal
entity must file a new exemption application to establish that it
qualifies for exemption. However, the IRS no longer requires a
new exemption application from a domestic 501(c) organization
that undergoes certain changes of its form or place of
organization described in Rev. Proc. 2018-15, 2018-9 I.R.B.
379, available at IRS.gov/irb/2018-09_IRB.

An organization must report new, significant program

TIP services or significant changes in how it conducts

program services in Part III of Form 990-EZ and in
Schedule O (Form 990 or 990-EZ), rather than in a letter to the
IRS Exempt Organization Determinations Office (“EO
Determinations”). EO Determinations no longer issues letters
confirming the tax-exempt status of organizations that report
such new services or significant changes.

Lines 35a–b. Unrelated Business Income
Unrelated Business Income

Line 34. Changes in Organizing or Governing
Documents

Political organizations described in section 527 aren’t required to
answer this question.

The organization must report significant changes to its
organizing or enabling document by which it was created
(articles of incorporation, association, or organization; trust
instrument; constitution; or similar document), and to its rules
governing its affairs (bylaws, regulations, operating agreement,
or similar document). Report changes made since the prior Form
990-EZ was filed, or that weren’t reported on any prior Form 990,
and that were made before the end of the tax year.

Check “Yes” on line 35a if the organization's total gross
income from all of its unrelated trades and businesses, and any
addition to unrelated business taxable income attributable to
expenses for a qualified transportation fringe required by section
512(a)(7), is $1,000 or more during the tax year. See Pub. 598
for a description of unrelated business income, and see the
Instructions for Form 990-T for the filing requirements of Form
990-T.

Examples of significant changes to the organizing or
governing documents include changes to:

If the organization answered “Yes” to line 35a but answered
“No” to line 35b because it didn’t file a Form 990-T for the tax

2018 Instructions for Form 990-EZ

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a. Section 501(c)(3) organizations,
b. State or local governments,
c. Entities whose income is exempt from tax under section
115, or
d. Organizations described in (1) through (3), previously.
5. Section 501(c)(4) and (5) organizations that receive more
than 90% of their annual dues from:
a. Persons,
b. Families, or
c. Entities

year, then explain in Schedule O why the organization didn’t file
a Form 990-T.
If the organization had income from business activities, such
as those reported on lines 2, 6a, and 7a (among others), but not
reported on Form 990-T, explain in Schedule O the reasons for
not reporting the income on Form 990-T.
Neither Form 990-T nor Form 990-EZ is a substitute for the
other. Items of income and expense reported on Form 990-T
must also be reported on Form 990-EZ (and vice versa) when
the organization is required to file both forms.

that each paid annual dues of $115 or less in 2018 (adjusted
annually for inflation). See Rev. Proc. 2017-58, 2017-45 I.R.B.
489.
6. Any organization that receives a private letter ruling from
the IRS stating that the organization satisfies the section 6033(e)
(3) exception.
7. Any organization that keeps records to substantiate that
90% or more of its members can’t deduct their dues (or similar
amounts) as business expenses whether or not any part of their
dues are used for lobbying purposes.
8. Any organization that isn’t a membership organization.

All tax-exempt organizations must pay estimated taxes
on their unrelated business income if they expect their
CAUTION tax liability to be $500 or more. Use Form 990-W,
Estimated Tax on Unrelated Business Taxable Income for
Tax-Exempt Organizations, to figure these amounts.

!

Line 35c. Section 6033(e) Tax for Lobbying
Expenditures
If the organization checks “No” to line 35c, it is certifying that it
wasn’t subject to the notice and reporting requirements of
section 6033(e) and that the organization had no lobbying and
political expenditures potentially subject to the proxy tax.

Special rules treat affiliated social welfare organizations,
agricultural and horticultural organizations, and business
CAUTION leagues as parts of a single organization for purposes of
meeting the nondeductible dues exception. See Rev. Proc.
98-19.

!

Section 6033(e) notice and reporting requirements and
proxy tax. Section 6033(e) requires certain section 501(c)(4),
501(c)(5), and 501(c)(6) organizations to tell their members the
portion of their membership dues that were allocable to the
political or lobbying activities of the organization. If an
organization doesn’t give its members this information, then the
organization is subject to a proxy tax. The tax is reported on
Form 990-T.
If the organization checks “Yes” on line 35c to declare that it
had reportable section 6033(e) lobbying and political expenses
in the tax year (and potential liability for the proxy tax):
1. Complete Part III of Schedule C (Form 990 or 990-EZ)
(see instructions), and
2. Attach this schedule to Form 990-EZ.

Exception 2. Section 6033(e)(1) $2,000 in-house lobbying
exception. An organization satisfies the $2,000 in-house
lobbying exception if it:
1. Didn’t receive a waiver for proxy tax owed for the prior
year;
2. Didn’t make any political expenditures or foreign lobbying
expenditures during the current tax year; and
3. Incurred lobbying expenses during the current tax year
consisting only of in-house direct lobbying expenses totaling
$2,000 or less, but excluding any allocable overhead expenses.

Only the following tax-exempt organizations are subject to the
section 6033(e) notice and reporting requirements, and a
potential proxy tax.
• Section 501(c)(4) social welfare organizations.
• Section 501(c)(5) agricultural and horticultural organizations.
• Section 501(c)(6) organizations.
If the organization isn’t tax-exempt under sections
501(c)(4), 501(c)(5), or 501(c)(6), check “No” on line 35c.
If the organization meets Exception 1 or 2 next, it is excluded
from the notice, reporting, and proxy tax requirements of section
6033(e), and it should check “No” on line 35c. See also Rev.
Proc. 98-19, 1998-1 C.B. 547.

Definitions

Grassroots lobbying. Refers to attempts to influence any
segment of the general public regarding legislative matters or
referendums.
Direct lobbying includes attempting to influence:
• Legislation through communication with legislators and other
government officials, and
• The official actions or positions of covered executive branch
officials through direct communication.
Direct lobbying doesn’t include attempting to influence:
• The general public regarding legislative matters (grassroots
lobbying).
Other lobbying includes:
• Grassroots lobbying,
• Foreign lobbying,
• Third-party lobbying, and
• Dues paid to another organization that were used to lobby.
In-house expenditures include:
• Salaries, and
• Other expenses of the organization's officials and staff
(including amounts paid or incurred for the planning of legislative
activities).
In-house expenditures don’t include:
• Any payments to other taxpayers engaged in lobbying or
political activities as a trade or business, and

Exception 1. Section 6033(e)(3) exception for nondeductible dues.
1. All organizations exempt from tax under section 501(a),
other than section 501(c)(4), 501(c)(5), and 501(c)(6)
organizations.
2. Local associations of employees' and veterans'
organizations described in section 501(c)(4), but not section
501(c)(4) social welfare organizations.
3. Labor unions and other labor organizations described in
section 501(c)(5), but not section 501(c)(5) agricultural and
horticultural organizations.
4. Section 501(c)(4), 501(c)(5), and 501(c)(6) organizations
that receive more than 90% of their dues from:
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2018 Instructions for Form 990-EZ

• Any dues paid to another organization that are allocable to
lobbying or political activities.

Line 37. Expenditures for Political Purposes

Political organizations described in section 527 aren’t
required to answer this question.

Line 36. Liquidation, Dissolution, Termination,
or Significant Disposition of Net Assets

A political expenditure is one intended to influence the
selection, nomination, election, or appointment of anyone to a
federal, state, or local public office, or office in a political
organization, or the election of Presidential or Vice-Presidential
electors. It doesn’t matter whether the attempt succeeds.

If there was a liquidation, dissolution, termination, or significant
disposition of net assets, enter “Yes” and complete and attach
the applicable parts of Schedule N (Form 990 or 990-EZ).
For a complete liquidation, dissolution, termination, or
cessation of operations, also check the Final return/terminated
box in the heading of the return.

An expenditure includes a payment, distribution, loan,
advance, deposit, or gift of money, or anything of value. It also
includes a contract, promise, or agreement to make an
expenditure, whether or not legally enforceable.

A significant disposition of net assets is a sale, exchange,
disposition, or other transfer of more than 25% of the FMV of the
organization's net assets during the year, regardless of whether
the organization received full or adequate consideration. A
significant disposition of net assets may result from either an
expansion or contraction of operations. A significant disposition
of net assets involves:
1. One or more dispositions during the organization's tax
year amounting to more than 25% of the FMV of the
organization's assets as of the beginning of its tax year; or
2. One of a series of related dispositions or events
commenced in a prior year, that when combined comprise more
than 25% of the FMV of the organization's assets as of the
beginning of the tax year when the first disposition of net assets
occurred. Whether a series of related dispositions is a significant
disposition of net assets depends on the facts and
circumstances in each case.

All section 501(c) organizations. An exempt organization that
isn’t a political organization must file Form 1120-POL, U.S.
Income Tax Return for Certain Political Organizations, if it is
treated as having political organization taxable income under
section 527(f)(1).
If a section 501(c) organization establishes and maintains a
section 527(f)(3) separate segregated fund, it is the fund's
responsibility to file its own Form 1120-POL if the fund meets the
Form 1120-POL filing requirements. Do not include the
segregated fund's receipts, expenditures, and balance sheet
items on the Form 990-EZ of the section 501(c) organization that
establishes and maintains the fund. When answering question
37 on its Form 990-EZ, the section 501(c) organization should
disregard the political expenses and Form 1120-POL filing
requirement of the segregated fund. However, when a section
501(c) organization transfers its own funds to a separate
segregated section 527(f)(3) fund for use as political expenses,
the section 501(c) organization must report the transferred funds
as its own political expenses on its Form 990-EZ.

Examples of the types of transactions that are significant
dispositions of net assets required to be reported in Part II of
Schedule N (Form 990 or 990-EZ) include:
• Taxable or tax-free sales or exchanges of exempt assets for
cash or other consideration (such as a social club described in
section 501(c)(7) selling land, or an exempt organization selling
assets it had used to further its exempt purposes);
• Sales, contributions, or other transfers of assets to establish
or maintain a partnership, joint venture, or corporation (for-profit
or nonprofit), regardless of whether such sales or transfers are
governed by section 721 or section 351, whether or not the
transferor receives an ownership interest in exchange for the
transfer;
• Sales of assets by a partnership or joint venture in which the
exempt partner has an ownership interest;
• Transfers of assets under a reorganization in which the
organization is a surviving entity; and
• A contraction of net assets resulting from a grant or charitable
contribution of assets to another organization described in
section 501(c)(3).

Section 501(c)(3) organizations. A section 501(c)(3)
organization will lose its tax-exempt status if it engages in
political activity.
A section 501(c)(3) organization must pay a section 4955
excise tax for any amount paid or incurred on behalf of, or in
opposition to, any candidate for public office. The organization
must pay an additional excise tax if it fails to correct the
expenditure timely.
A manager of a section 501(c)(3) organization who knowingly
agrees to a political expenditure must pay a section 4955 excise
tax, unless the agreement isn’t willful and there is reasonable
cause. A manager who doesn’t agree to a correction of the
political expenditure may have to pay an additional excise tax.
When an organization promotes a candidate for public office
(or is used or controlled by a candidate or prospective
candidate), amounts paid or incurred for the following purposes
are political expenditures.
• Remuneration to such individual (a candidate or prospective
candidate) for speeches or other services.
• Travel expenses of such individual.
• Expenses of conducting polls, surveys, or other studies, or
preparing papers or other material for use by such individual.
• Expenses of advertising, publicity, and fundraising for such
individual.
• Any other expense that has the primary effect of promoting
public recognition or otherwise primarily accruing to the benefit
of such individual.
An organization is effectively controlled by a candidate or
prospective candidate only if such individual has a continuing,
substantial involvement in the day-to-day operations or
management of the organization.
A determination of whether the primary purpose of an
organization is promoting the candidacy or prospective
candidacy of an individual for public office is made on the basis

An organization filing Form 990-EZ need not complete

TIP Part II of Schedule N for a transaction that isn’t a
significant disposition of net assets.

The following aren’t considered significant dispositions of net
assets for purposes of Schedule N, Part II.
• The change in composition of publicly traded securities held
in an exempt organization’s passive investment portfolio.
• Asset sales made in the ordinary course of the organization’s
exempt activities to accomplish the organization’s exempt
purposes, such as gross sales of inventory.
• Grants or other assistance made in the ordinary course of the
organization’s exempt activities to accomplish the organization’s
exempt purposes, such as the regular charitable distributions of
a United Way or other federated fundraising organization.
• A decrease in the value of net assets due to market
fluctuation in the value of assets held by the organization.
• Transfers to a disregarded entity of which the organization is
the sole member.
2018 Instructions for Form 990-EZ

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Line 40a. Section 501(c)(3) Organizations:
Disclosure of Excise Taxes Imposed Under
Section 4911, 4912, or 4955

of all the facts and circumstances. See section 4955 and
Regulations section 53.4955.
Use Form 4720 to figure and report these excise taxes.

Section 501(c)(3) organizations must disclose any excise tax
imposed during the year under section 4911 (excess lobbying
expenditures), 4912 (disqualifying lobbying expenditures), or,
unless abated, 4955 (political expenditures). See sections 4962
and 6033(b).

Line 38. Loans to or From Officers, Directors,
Trustees, and Key Employees

Enter the end-of-year unpaid balance of secured and unsecured
loans made to or received from officers, directors, trustees, and
key employees (as defined in Part IV earlier). For example, if the
organization borrowed $1,000 from one officer and loaned $500
to another, none of which has been repaid, report $1,500 on
line 38b.

Line 40b. Section 501(c)(3), 501(c)(4), and
501(c)(29) Organizations: Disclosure of Section
4958 Excess Benefit Transactions and Excise
Taxes

For loans outstanding at the end of the year, complete and
attach Part II of Schedule L (Form 990 or 990-EZ). See the
Schedule L instructions.

Answer “Yes” if the organization became aware, prior to filing
this return, that it engaged in an excess benefit transaction with a
disqualified person in the current tax year or in a prior year, and if
the transaction hasn’t been reported on any of the organization's
prior Forms 990 or 990-EZ.

Report any interest expense paid to an officer, director,
trustee, or key employee on line 16 (except for mortgage interest
reportable on line 14) and any interest income paid by an officer,
director, trustee, or key employee on line 8.

Sections 6033(b) and 6033(f) require section 501(c)(3) and
501(c)(4) organizations to report the amount of taxes imposed
under section 4958 (excess benefit transactions) involving the
organization, unless abated, as well as any other information the
Secretary may require concerning those transactions.

Line 39. Section 501(c)(7) Organizations
Gross receipts test. See Appendix C for a discussion of the
gross receipts test for purposes of determining exemption under
section 501(c)(7). This definition of gross receipts differs from
the definition for purposes of header Item L and determining
whether the organization must file Form 990 or 990-EZ.

If the organization answers “Yes,” then complete and attach
Part I of Schedule L (Form 990 or 990-EZ).
An excess benefit transaction can have serious

Line 39a. Include capital contributions, initiation fees, and
unusual amounts of income not included in figuring gross
receipts for the purpose of determining the exempt status of
section 501(c)(7) organizations, as discussed in Appendix C.

TIP implications for the disqualified person that entered into

the transaction with the organization, any organization
managers that knowingly approved of the transaction, and the
organization itself. A section 501(c)(3), 501(c)(4), or 501(c)(29)
organization that becomes aware that it may have engaged in an
excess benefit transaction should obtain competent advice
regarding section 4958, pursue correction of any excess benefit,
and take other appropriate steps to protect its interests with
regard to such transaction and the potential impact it could have
on the organization's continued exempt status. See Appendix E:
Section 4958 Excess Benefit Transactions, for a discussion of
section 4958, and Schedule L, Part I, about reporting excess
benefit transactions.

Line 39b. Gross receipts for public use of club facilities are
gross receipts (as defined above for 501(c)(7) exemption
purposes) derived from the use of the organization's facilities by
persons other than members, spouses of members, dependents
of members, or guests of members.
Investment income and Form 990-T. If a section 501(c)(7)
organization qualifies as tax exempt under the gross receipts
test described in Appendix C, then include the amount entered
on line 39b of Form 990-EZ on the club's Form 990-T if the club
is required to file Form 990-T. Investment income earned by a
section 501(c)(7) organization isn’t tax-exempt income unless it
is set aside for one or more of the following purposes: religious,
charitable, scientific, literary, educational purposes, or
prevention of cruelty to children or animals.
If the combined amount of an organization's gross investment
income and other unrelated business income is $1,000 or more,
it must report the investment income and other unrelated
business income on Form 990-T.

Line 40c. Taxes Imposed on Organization
Managers or Disqualified Persons

Enter the amount of taxes imposed on organization managers
and/or disqualified persons under sections 4912, 4955, and
4958, unless abated.

Line 40d. Taxes Reimbursed by the
Organization

Nondiscrimination policy. A section 501(c)(7) organization
isn’t exempt from income tax if any written policy statement,
including the governing instrument and bylaws, allows
discrimination on the basis of race, color, or religion.
However, section 501(i) allows social clubs to retain their
exemption under section 501(c)(7) even though their
membership is limited (in writing) to members of a particular
religion, if the social club:
1. Is an auxiliary of a fraternal beneficiary society exempt
under section 501(c)(8), and
2. Limits its membership to the members of a particular
religion; or the membership limitation is:
a. A good-faith attempt to further the teachings or principles
of that religion, and
b. Not intended to exclude individuals of a particular race or
color.

Enter the amount of tax on line 40c that was reimbursed by the
organization. Any reimbursement of the excise tax liability of a
disqualified person or organization manager will be treated as an
excess benefit unless:
1. The organization treats the reimbursement as
compensation during the year the reimbursement is made; and
2. The total compensation to that person, including the
reimbursement, is reasonable.

Line 40e. Tax on Prohibited Tax Shelter
Transactions

Answer “Yes” if the organization was a party to a prohibited tax
shelter transaction as described in section 4965(e) at any time
during the organization's tax year. An organization that files
Form 990-EZ (other than a section 527 political organization)
and that is a party to a prohibited tax shelter transaction must file
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2018 Instructions for Form 990-EZ

This penalty doesn’t apply to volunteer unpaid members of
any board of trustees or directors of a tax-exempt organization, if
these members are solely serving in an honorary capacity, don’t
participate in the day-to-day or financial activities of the
organization, and don’t have actual knowledge of the failure to
collect, account for, and pay over these taxes. However, the
preceding sentence doesn’t apply if it results in no person being
liable for the penalty.
The penalty is equal to the unpaid trust fund tax. See Pub. 15
(Circular E) for more details, including the definition of
responsible persons.

Form 8886-T, Disclosure by Tax-Exempt Entity Regarding
Prohibited Tax Shelter Transaction, and may also have to file
Form 4720 and pay excise tax imposed by section 4965. For
more information, see the instructions for Forms 8886-T and
4720.

Line 41. List of States

List each state where the organization is filing a copy of this
return in full or partial satisfaction of state filing requirements.

Line 42a. Location of Books and Records

Provide the name of the person who possesses the
organization's books and records. The organization isn’t
required to provide the address or telephone number for the
personal residence of an individual. The organization's address
and phone number can be used instead, or the business
address and telephone number of such individual.

Line 44a. Donor Advised Funds

!

CAUTION

A sponsoring organization is any of the following types of
organizations if it maintains one or more donor advised funds.
1. A section 501(c)(3) public charity described in section
509(a)(1), (2), or (3).
2. A veterans' organization, organized in the United States
or any of its possessions, no part of the net earnings of which
inures to the benefit of any private shareholder or individual, that
meets the requirements to receive deductible contributions
under section 170(c)(3).
3. A domestic fraternal organization described in section
501(c)(8) or (10) that uses charitable contributions exclusively
for charitable purposes.
4. A cemetery company described in section 501(c)(13).

Line 42b. Foreign Financial Accounts

Answer “Yes” if either item 1 or 2 below applies.
1. At any time during the calendar year ending with or within
the organization's tax year, the organization had an interest in, or
signature or other authority over, a financial account in a foreign
country (such as a bank account, securities account, or other
financial account); and
a. The combined value of the accounts was more than
$10,000 at any time during the calendar year; and
b. The accounts weren’t with a U.S. military banking facility
operated by a U.S. financial institution.
2. The organization owns more than 50% of the stock in any
corporation that would answer “Yes” to item 1 above.

A “donor advised fund” is a fund or account:
1. That is separately identified by reference to contributions
of a donor or donors,
2. That is owned and controlled by a sponsoring
organization, and
3. Over which the donor or donor advisor has or reasonably
expects to have advisory privileges in the distribution or
investment of amounts held in the donor advised fund or account
because of the donor's status as a donor.

If “Yes,” enter the name of the foreign country or countries.
Continue on Schedule O if more space is needed.
If “Yes,” file FinCEN Form 114, Report of Foreign Bank and
Financial Accounts (FBAR), electronically, with the Department
of the Treasury using FinCEN's BSA E-Filing System. Because
FinCEN Form 114 isn’t a tax form, don’t file with Form 990-EZ.
See FINCEN.gov for more information.

Line 43. Section 4947(a)(1) Nonexempt
Charitable Trusts

A donor advised fund doesn’t include any fund or account:
1. That makes distributions only to a single identified
organization or governmental entity; or
2. For which a donor or donor advisor gives advice about
which individuals receive grants for travel, study, or other similar
purposes, if:
a. The donor or donor advisor's advisory privileges are
performed exclusively by such person in his or her capacity as a
committee member in which all of the committee members are
appointed by the sponsoring organization;
b. No combination of donors or donor advisors directly or
indirectly control the committee; and
c. All grants from the fund or account are awarded on an
objective and nondiscriminatory basis following a procedure
approved in advance by the board of directors of the sponsoring
organization. The procedure must be designed to ensure that all
grants meet the requirements of section 4945(g)(1), (2), or (3);
or
3. That the Secretary exempts from being treated as a donor
advised fund because either such fund or account is advised by
a committee not directly or indirectly controlled by the donor or
donor advisor or such fund benefits a single identified charitable
purpose. For example, see Notice 2006-109, 2006-51 I.R.B.
1121, which is modified by Rev. Proc. 2009-32, 2009-28
I.R.B.142; and Rev. Proc. 2009-32 is modified and superseded

A section 4947(a)(1) nonexempt charitable trust that has no
taxable income under Subtitle A can use Form 990-EZ to meet
its section 6012 filing requirement by checking the box on line 43
(in which case Form 1041 isn’t required). In such case, enter on
line 43 the total of exempt-interest dividends received or accrued
(if reporting under the accrual method of accounting) during the
tax year. Such tax-exempt interest includes exempt-interest
dividends received from a mutual fund or other regulated
investment company as well as tax-exempt interest received
directly.
Section 4947(a)(1) nonexempt charitable trusts must
complete all sections of the Form 990-EZ and schedules that
501(c)(3) organizations must complete. All references to a
section 501(c)(3) organization in the Form 990-EZ, schedules,
and instructions include a section 4947(a)(1) trust (for instance,
such a trust must complete Schedule A (Form 990 or 990-EZ)),
unless expressly excepted.
Trust fund recovery penalty. If certain excise, income,
social security, and Medicare taxes that must be collected or
withheld aren’t collected or withheld, or these taxes aren’t paid to
the IRS, a trust fund recovery penalty may apply. The trust fund
recovery penalty may be imposed on all persons (including
volunteers) who the IRS determines were responsible for
collecting, accounting for, and paying over these taxes, and who
acted willfully in not doing so.
2018 Instructions for Form 990-EZ

A sponsoring organization of a donor advised fund must
file Form 990 rather than Form 990-EZ, regardless of the
amount of its gross receipts or net assets.

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Related Organizations and Unrelated Partnerships, rather than
Form 990-EZ if the controlling organization either:
1. Received or accrued from the controlled entity any
interest, annuities, royalties, or rent, regardless of amount,
during the tax year; or
2. Engaged in another type of transaction (see the
Schedule R instructions for a description of transactions) with
the controlled entity, if the amounts involved during the tax year
for such type of transaction exceeded $50,000.

by Rev. Proc. 2011-33, 2011-25 I.R.B. 887; and any future
related guidance.
A “donor advisor” is any person appointed or designated by a
donor to advise a sponsoring organization on the distribution or
investment of amounts held in the donor's donor advised fund or
similar account.

Line 44b. Hospital Facilities

If the organization operated one or more hospital facilities during
the tax year, it must complete and file Form 990 and Schedule H
(Form 990) and not Form 990-EZ.

The organization should check “Yes” to line 45b only if
transactions with the controlled entity are described in
CAUTION (1) or (2). That organization should file Form 990 and
Schedule R. If transactions with the controlled entity are not
described in (1) or (2), the organization isn’t precluded from filing
Form 990-EZ because of those transactions, and should check
“No” to line 45b.

!

A “hospital facility” is a facility that is required to be licensed,
registered, or similarly recognized by a state as a hospital. This
includes a hospital that is operated through a disregarded entity
or joint venture treated as a partnership for federal tax purposes.
It doesn’t include hospitals that are located outside the United
States. It also doesn’t include hospitals that are operated by
entities organized as separate legal entities from the
organization that are treated as corporations for federal tax
purposes.

Line 46. Political Campaign Activities

Answer “Yes” and complete the applicable parts of Part I of
Schedule C (Form 990 or 990-EZ) if the organization
participated or intervened in (including the publishing of
statements) any political campaign on behalf of (or in opposition
to) any candidate for public office, directly or indirectly. See the
Schedule C instructions for a discussion of political activity.

The definition of “hospital” for Schedule A (Form 990 or

TIP 990-EZ), Part I, is different from the definition of “hospital

facility” for Schedule H (Form 990). See the Glossary in
the Form 990 instructions for the respective definitions.

Part VI. Section 501(c)(3)
Organizations

Lines 44c and d. Payments for Indoor Tanning
Services

All section 501(c)(3) organizations (including, for purposes of
Form 990-EZ, section 4947(a)(1) nonexempt charitable trusts)
must complete Part VI.

The organization should check “Yes” for line 44c if it received
any payments during the year for indoor tanning services.
“Indoor tanning services” are services employing any electronic
product designed to incorporate one or more ultraviolet lamps
and intended for the irradiation of an individual by ultraviolet
radiation, with wavelengths in air between 200 and 400
nanometers, to induce skin tanning.

Line 47. Lobbying Activities

Answer “Yes” and complete Part II of Schedule C (Form 990 or
990-EZ) if the organization engaged in lobbying activities or had
a section 501(h) election in effect during the tax year. All section
501(c)(3) organizations that had a section 501(h) election in
effect during the tax year must complete Schedule C (Form 990
or 990-EZ), Part II-A, regardless of whether they engaged in
lobbying activities during the tax year. See the Schedule C
instructions for a discussion of lobbying activities.

If an organization received a payment for services for indoor
tanning services during the year, it must collect from the
recipient of the services a tax equal to 10% of the amount paid
for such service, whether paid by insurance or otherwise, and
remit such tax quarterly to the IRS by filing Form 720, Quarterly
Federal Excise Tax Return. If the organization filed Form 720
during the year, it should check “Yes” to line 44d. If it answers
“No” to line 44d, it should explain in Schedule O why it didn’t file
Form 720.

Line 48. Schools

Answer “Yes” and complete Schedule E (Form 990 or 990-EZ) if
the organization checked the box on line 2 of Schedule A (Form
990 or 990-EZ), Part I, indicating that it is a school.

Line 45a. Section 512(b)(13) Controlled Entity

Line 49. Transfers to Exempt Non-Charitable
Related Organizations

Answer “Yes” if the organization had a controlled entity within the
meaning of section 512(b)(13) during the tax year. A controlled
entity within the meaning of section 512(b)(13) may be a stock or
nonstock corporation, association, partnership, LLC, or trust of
which the controlling organization owns more than 50% of:
• The stock of a corporation (measured by voting power or
value),
• The profits or capital interest in a partnership, or
• The beneficial interest in a trust or other entity.

Answer “Yes” if the organization made any transfer to a related
organization that is an exempt organization other than a 501(c)
(3) organization, such as a related 501(c)(4) organization or a
related 527 political organization.
A transfer for this purpose is any transaction or arrangement
in which the organization transferred something of value (cash,
other assets, services, use of property, etc.) to the exempt
non-charitable related organization, whether or not for adequate
consideration. The organization can (but isn’t required to)
explain the transfer in Schedule O.

For the definition of “control” in this context, see section
512(b)(13)(D) and Regulations section 1.512(b)-1(l)(4)
(substituting “more than 50%” for “at least 80%” in the
regulations, for purposes of this definition). For the definition of
“control of a nonprofit organization,” see the Line 49 instructions.

For purposes of Form 990-EZ, a related organization is an
organization (including a nonprofit organization, a stock
corporation, a partnership or LLC, a trust, and a governmental
unit or other governmental entity) that is in one or more of the
following relationships to the filing organization at any time
during the tax year.

Line 45b. Transactions With a Section 512(b)(13)
Controlled Entity
A controlling organization of a controlled entity under section
512(b)(13) must file Form 990 and Schedule R (Form 990),
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2018 Instructions for Form 990-EZ

• Parent: an organization that controls the filing organization
(see definition of “control,” later).
• Subsidiary: an organization controlled by the filing
organization.
• Brother/Sister: an organization controlled by the same person
or persons that control the filing organization. However, if the
filing organization is a trust that has a bank or financial institution
trustee that is also the trustee of another trust, the other trust
isn’t a brother/sister related organization of the filing organization
on the ground of common control by the bank or financial
institution trustee.
• Supporting/Supported: an organization that claims to be at
any time during the tax year, or that is classified by the IRS at
any time during the tax year, as (i) a supporting organization of
the filing organization within the meaning of section 509(a)(3), if
the filing organization is a supported organization within the
meaning of section 509(f)(3); or (ii) a supported organization, if
the filing organization is a supporting organization.

purposes of determining constructive ownership of another
entity (a partnership or trust). If an entity X controls an entity
treated as a partnership by being one of three or fewer partners
or members, then an organization that controls X also controls
the partnership.
See Regulations sections 301.7701-2, -3, and -4 for more
information on classification of corporations, partnerships,
disregarded entities, and trusts.

Line 50. Five Highest Compensated Employees
Over $100,000

Complete this table for the five employees (other than officers,
directors, trustees, and key employees as defined in the Part IV
instructions) with the highest annual compensation over
$100,000. On line 50f, enter the number of other employees
(other than officers, directors, trustees, and key employees) with
annual compensation over $100,000 who aren’t individually
listed.

For purposes of determining whether an organization is
related, control exists in the following situations.
• Control of a nonprofit organization (or other organization
without owners or persons having beneficial interests, whether
the organization is taxable or tax exempt): One or more persons
(whether individuals or organizations) control a nonprofit
organization if they have the power to remove and replace (or to
appoint, elect, or approve or veto the appointment or election of,
if such power includes a continuing power to appoint, elect, or
approve or veto the appointment or election of, periodically or in
the event of vacancies) a majority of the nonprofit organization’s
directors or trustees, or a majority of members who elect a
majority of the nonprofit organization’s directors or trustees.
Such power can be exercised directly by a parent organization
through one or more of the parent organization’s officers,
directors, trustees, or agents, acting in their capacity as officers,
directors, trustees, or agents of the parent organization. Also, a
parent organization controls a subsidiary nonprofit organization if
a majority of the subsidiary’s directors or trustees are trustees,
directors, officers, employees, or agents of the parent.
• Control of a stock corporation: One or more persons (whether
individuals or organizations) control a stock corporation if they
own more than 50% of the stock (by voting power or value) of
the corporation.
• Control of a partnership or LLC: One or more persons control
a partnership if they own more than 50% of the profits or capital
interests in the partnership (including an LLC treated as a
partnership or disregarded entity for federal tax purposes,
regardless of the designation under state law of the ownership
interests as stock, membership interests, or otherwise). A
person also controls a partnership if the person is a managing
partner or managing member of a partnership or LLC which has
three or fewer managing partners or managing members
(regardless of which partner or member has the most actual
control), or if the person is a general partner in a limited
partnership which has three or fewer general partners
(regardless of which partner has the most actual control). For
this purpose, a “managing partner” is a partner designated as
such under the partnership agreement, or regularly engaged in
the management of the partnership even though not so
designated.
• Control of a trust with beneficial interests: One or more
persons control a trust if they own more than 50% of the
beneficial interests in the trust. A person’s beneficial interest in a
trust shall be determined in proportion to that person’s actuarial
interest in the trust as of the end of the tax year.

A fiscal-year organization must use the calendar year ending
within its tax year to determine its five highest compensated
employees over $100,000, and to report the compensation.
Combine the compensation includible in Part VI, columns (c),
(d), and (e), in determining whether compensation exceeds
$100,000 for the calendar year.
See the Part IV instructions for more information on
compensation reporting and for completing table columns (a)
through (e) of line 50, and for information on the
$10,000-per-item exception for column (e).
Example. S isn’t a key employee. The organization uses a
calendar tax year. During the year, S received a salary of
$80,000 and a $2,000 bonus. S contributed $5,000 of the salary
on a pre-tax basis to a qualified defined-contribution retirement
plan, and received a matching employer contribution of $5,000
from the organization. S contributed another $5,000 of the salary
on a pre-tax basis to a qualified health plan. S received from the
employer nontaxable health benefits for herself and her family of
$10,000, and non-taxable family educational benefits of $5,000.
To determine whether S is to be listed as among the five
highest compensated employees, S's compensation in column
(c) would be $82,000, the amount reportable in Form W-2,
box 5, consisting of the $80,000 salary (including her
contributions to the qualified plans) and the $2,000 bonus. S's
compensation in column (d) would be $15,000, consisting of the
organization's payments of $5,000 to the retirement plan and
$10,000 to the health plan. S wouldn’t report the $5,000 in
nontaxable family educational benefits in column (e) because it
is excluded under the $10,000-per-item exception for column
(e). Thus, S's total compensation of $97,000 wouldn’t place her
among the five highest compensated employees over $100,000.
See Pub. 525 for more information.

Line 51. Five Highest Compensated
Independent Contractors Over $100,000

Complete this table for the five highest compensated
independent contractors that received more than $100,000 in
compensation for services, whether professional services or
other services, from the organization. On line 51d, enter the
number of other independent contractors with annual
compensation over $100,000 who aren’t individually listed.
Independent contractors include organizations as well as
individuals and can include professional fundraisers, law firms,
accounting firms, publishing companies, management
companies, and investment management companies. Do not
report public utilities or insurance providers as independent
contractors. See Pub. 1779, Independent Contractor or

Control can be indirect. For example, if the filing organization
controls Entity A, which in turn controls Entity B, the filing
organization will be treated as controlling Entity B. To determine
indirect control through constructive ownership of a corporation,
rules under section 318 apply. Similar principles apply for
2018 Instructions for Form 990-EZ

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Employee, and Pub. 15-A, Employer's Supplemental Tax Guide,
for distinguishing employees from independent contractors.
The organization must use the calendar year ending with or
within its tax year in determining its five highest compensated
independent contractors and reporting their compensation in
such year on line 51.

Enter the paid preparer’s PTIN, not his or her social
security number (SSN), in the “PTIN” box in the paid
CAUTION preparer’s block. The IRS won’t redact the paid
preparer’s SSN if such SSN is entered on the paid preparer’s
block. Because Form 990-EZ is a publicly disclosable document,
any information entered in this block will be publicly disclosed
(see Appendix D).

!

Column (c)—Compensation. Enter the amount of
compensation the organization paid, whether reported in Form
1099-MISC, box 7, or paid under the parties’ agreement or
applicable state law, for the calendar year ending with or within
the organization’s tax year. Otherwise, report the amount paid
under the parties' agreement or applicable state law.

Note. A paid preparer may sign original or amended returns by
rubber stamp, mechanical device, or computer software
program. Also, facsimile signatures are authorized.

Paid Preparer Authorization

On the last line of Form 990-EZ, check “Yes” if the IRS can
contact the paid preparer who signed the return to discuss the
return. This authorization applies only to the individual whose
signature appears in the Paid Preparer Use Only section of the
Form 990-EZ. It doesn’t apply to the firm, if any, shown in that
section.

Form 1099-MISC isn’t always required to be issued for
TIP payments to an independent contractor.
Compensation includes fees and similar payments to
independent contractors but not reimbursement of expenses.
However, for this purpose, the organization must report the
gross payment to the independent contractor that includes
expenses and fees if the expenses aren’t separately reported to
the organization.

By checking this box “Yes,” the organization is authorizing the
IRS to contact the paid preparer to answer any questions that
may arise during the processing of the return. The organization
is also authorizing the paid preparer to:
• Give the IRS any information that is missing from the return;
• Call the IRS for information about the processing of the return;
and
• Respond to certain IRS notices about math errors, offsets,
and return preparation.

Signature Block

The return must be signed by the current president, vice
president, treasurer, assistant treasurer, chief accounting officer,
or other corporate officer (such as tax officer) who is authorized
to sign as of the date this return is filed. A receiver, trustee, or
assignee must sign any return he or she files for a corporation or
association. See Regulations section 1.6012-3(b)(4). For a trust,
the authorized trustee(s) must sign.

The organization isn’t authorizing the paid preparer to bind
the organization to anything or otherwise represent the
organization before the IRS.

Paid Preparer

The authorization will automatically end no later than the due
date (excluding extensions) for filing the organization's 2019
Form 990-EZ. If the organization wants to expand the paid
preparer's authorization or revoke the authorization before it
ends, see Pub. 947, Practice Before the IRS and Power of
Attorney.

Generally, anyone who is paid to prepare the return must sign
the return, list the preparer taxpayer identification number
(PTIN), and fill in the other blanks in the Paid Preparer Use Only
area. An employee of the filing organization isn’t a paid preparer.
The paid preparer must:
• Sign the return in the space provided for the preparer's
signature;
• Enter the preparer information (including the preparer’s PTIN
and the preparer firm’s EIN, if applicable); and
• Give a copy of the return to the organization.
Any paid preparer can apply for and obtain a PTIN online at
IRS.gov/PTIN or by filing Form W-12, IRS Paid Preparer Tax
Identification Number (PTIN) Application and Renewal.

Check “No” if the IRS is to contact the organization at the
address or telephone number listed in the heading, rather than
the paid preparer.

Appendix of Special Instructions to
Form 990-EZ
Contents
A
B
C
D
E
F
G
H

Exempt Organizations Reference Chart
How To Determine Whether an Organization's Gross Receipts Are
Normally $50,000 (or $5,000) or Less
Special Gross Receipts Tests for Determining Exempt Status of Section
501(c)(7) and Section 501(c)(15) Organizations
Public Inspection of Returns
Section 4958 Excess Benefit Transactions
Forms and Publications To File or Use
Use of Form 990 or 990-EZ To Satisfy State Reporting Requirements
Contributions

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2018 Instructions for Form 990-EZ

Appendix A: Exempt Organizations
Reference Chart
EO Reference Chart
To determine how the instructions for Form 990-EZ apply to the
organization, an organization must know the Code section under
which the organization is exempt.

Trusts described in section 4049 of
the Employer Retirement Income
Security Act

501(c)(24)

Title Holding Corporations or Trusts

501(c)(25)

State-Sponsored Organizations
Providing Health Coverage for
High-Risk Individuals

501(c)(26)

State-Sponsored Workmen's
Compensation and Insurance and
Reinsurance Organizations

501(c)(27)

Type of Organization

I.R.C. Section

Corporations Organized Under Act of
Congress

501(c)(1)

National Railroad Retirement
Investment Trust

501(c)(28)

Title Holding Corporations

501(c)(2)

501(c)(29)

Charitable, Religious, Educational,
Scientific, etc. Organizations

501(c)(3)

Qualified Nonprofit Health Insurance
Issuers
Religious and Apostolic Associations

501(d)
501(e)
501(f)

Civic Leagues and Social Welfare
Organizations

501(c)(4)

Cooperative Hospital Service
Organizations

Labor, Agricultural, and Horticultural
Organizations

501(c)(5)

Cooperative Service Organizations of
Operating Educational Organizations

Business Leagues, etc.

501(c)(6)

Amateur Sports Organizations

501(j)

501(c)(7)

Child Care Organizations

501(k)

Charitable Risk Pools

501(n)

Political Organizations

527

Social and Recreation Clubs
Fraternal Beneficiary and Domestic
Fraternal Societies and Associations

501(c)(8) & (c)(10)

Voluntary Employees' Beneficiary
Associations

501(c)(9)

Teachers' Retirement Fund
Associations

501(c)(11)

Benevolent Life Insurance
Associations, Mutual Ditch or
Irrigation Companies, Mutual or
Cooperative Telephone Companies,
etc.

501(c)(12)

Cemetery Companies

501(c)(13)

State-Chartered Credit Unions,
Mutual Reserve Funds

501(c)(14)

Insurance Companies or Associations
Other Than Life

501(c)(15)

Cooperative Organizations To
Finance Crop Operations

501(c)(16)

Supplemental Unemployment Benefit
Trusts

501(c)(17)

Employee Funded Pension Trusts
(created before 6/25/1959)

501(c)(18)

Organizations of Past or Present
Members of the Armed Forces

Appendix B: How To Determine
Whether an Organization's Gross
Receipts Are Normally $50,000 (or
$5,000) or Less

To figure whether an organization has to file Form 990-EZ (or
990), apply the $50,000 (or $5,000) gross receipts test (below)
using the following definition of gross receipts and information in
Figuring Gross Receipts, later.

Gross Receipts

Gross receipts are the total amounts the organization received
from all sources during its annual tax year (including short
years), without subtracting any costs or expenses.
Do not use the definition of gross receipts described in
Appendix C to figure gross receipts for this purpose. The
CAUTION Appendix C tests are limited to determining the
tax-exempt status of section 501(c)(7) and 501(c)(15)
organizations.

!

501(c)(19) & (c)(23)

Black Lung Benefit Trusts

501(c)(21)

Withdrawal Liability Payment Funds

501(c)(22)

Gross receipts when acting as an agent. If a local chapter of
a section 501(c)(8) fraternal organization collects insurance
premiums for its parent lodge and merely sends those premiums
to the parent without asserting any right to use the funds or
otherwise deriving any benefit from them, the local chapter
doesn’t include the premiums in its gross receipts. The parent
lodge reports them instead. The same treatment applies in other
situations in which one organization collects funds merely as an
agent for another.

Figuring Gross Receipts

Figure gross receipts for Form 990 and 990-EZ as follows.
Form 990. Gross receipts are the sum of lines 6b (both
columns), 7b (both columns), 8b, 9b, 10b, and 12 (Column A) of
Form 990, Part VIII.
Form 990-EZ. Gross receipts are the sum of lines 5b, 6c, 7b,
and 9 of Form 990-EZ, Part I.

2018 Instructions for Form 990-EZ

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• Dues;
• Assessments; and
• Investment income (such as dividends, rents, and similar

Example. Organization M reported $50,000 as total revenue
on line 9 of its Form 990-EZ. M added back the costs and
expenses it had deducted on lines 5b ($2,000); 6c ($1,500); and
7b ($500) to its total revenue of $50,000 and determined that its
gross receipts for the tax year were $54,000.

receipts), and normal recurring capital gains on investments.
Gross receipts for this purpose don’t include:

• Capital contributions (see Regulations section 1.118-1),
• Initiation fees, or
• Unusual amounts of income (such as the sale of the

$50,000 Gross Receipts Test

To determine whether an organization's gross receipts are
normally $50,000 or less, apply the following test. An
organization's gross receipts are considered normally to be
$50,000 or less if the organization is:
1. Up to a year old and has received, or donors have
pledged to give, $75,000 or less during its first tax year;
2. Between 1 and 3 years old and averaged $60,000 or less
in gross receipts during each of its first 2 tax years; or
3. Three years old or more and averaged $50,000 or less in
gross receipts for the immediately preceding 3 tax years
(including the year for which the return would be filed).

clubhouse).

!

CAUTION

College fraternities or sororities or other organizations
that charge membership initiation fees, but not annual
dues, must include initiation fees in their gross receipts.

Section 501(c)(15)

If any section 501(c)(15) insurance company (other than life
insurance) meets both parts of the following test, then the
company can file Form 990 (or 990-EZ, if applicable).
1. The company's gross receipts must be equal to or less
than $600,000.
2. The company's premiums must be more than 50% of its
gross receipts.

If the organization's gross receipts are normally $50,000 or
less, it must submit Form 990-N if it chooses not to file Form 990
or 990-EZ. In general, organizations excepted from filing Form
990 or 990-EZ because of low gross receipts must submit Form
990-N. See the filing exceptions described in General Instruction
B, earlier.

If the company didn’t meet this test and the company is a
mutual insurance company, then it must meet the Alternate test
to qualify to file Form 990 (or 990-EZ, if applicable). Insurance
companies that don’t qualify as tax exempt must file Form
1120-PC, U.S. Property and Casualty Insurance Company
Income Tax Return, or Form 1120, U.S. Corporation Income Tax
Return, as taxable entities for the year. See Notice 2006-42,
2006-19 I.R.B. 878, available at IRS.gov/irb/2006-19_IRB/
ar08.html.
Alternate test. If any section 501(c)(15) insurance company
(other than life insurance) is a mutual insurance company and it
didn’t meet the above test, then the company must meet both
parts of the following alternate test.
1. The company's gross receipts must be equal to or less
than $150,000.
2. The company's premiums must be more than 35% of its
gross receipts.

$5,000 Gross Receipts Test

To determine whether an organization's gross receipts are
normally $5,000 or less, apply the following test. An
organization's gross receipts are considered normally to be
$5,000 or less if the organization is:
1. Up to a year old and has received, or donors have
pledged to give, $7,500 or less during its first tax year;
2. Between 1 and 3 years old and averaged $6,000 or less
in gross receipts during each of its first 2 tax years; or
3. Three years old or more and averaged $5,000 or less in
gross receipts for the immediately preceding 3 tax years
(including the year for which the return would be filed).

Appendix C: Special Gross Receipts
Tests for Determining Exempt Status
of Section 501(c)(7) and Section
501(c)(15) Organizations

If the company doesn’t meet either test, then it must file Form
1120 or 1120-PC (if the company isn’t entitled to insurance
reserves) instead of Form 990 or 990-EZ.
The alternate test doesn’t apply if any employee of the
mutual insurance company or a member of the
CAUTION employee's family is an employee of another company
that is exempt under section 501(c)(15) (or would be exempt if
this provision didn’t apply).

!

Section 501(c)(7) organizations (social clubs) and 501(c)(15)
organizations (insurance companies) apply the same gross
receipts test as other organizations to determine whether they
must file the Form 990 or 990-EZ. However, section 501(c)(7)
and 501(c)(15) organizations are also subject to separate gross
receipts tests to determine if they qualify as tax exempt for the
tax year. The following tests use a special definition of gross
receipts for purposes of determining whether these
organizations are exempt for a particular tax year.

Gross receipts. To determine whether a section 501(c)(15)
organization satisfies either of the above tests described in
Appendix C, figure gross receipts by adding:
1. Premiums (including deposits and assessments) without
reduction for return premiums or premiums paid for reinsurance;
2. Gross investment income of a non-life insurance
company (as described in section 834(b)); and
3. Other items that are included in the filer's gross income
under Subchapter B, Chapter 1, Subtitle A, of the Code.

Section 501(c)(7)

A section 501(c)(7) organization can receive up to 35% of its
gross receipts, including investment income, from sources
outside its membership and remain tax exempt. Part of the 35%
(up to 15% of gross receipts) can be from public use of a social
club's facilities.

This definition doesn’t, however, include contributions to
capital. For more information, see Notice 2006-42.
Premiums. Premiums consist of all amounts received as a
result of entering into an insurance contract. They are reported
on Form 990, Part VIII, line 2, or on Form 990-EZ, Part I, line 2.
Anti-abuse rule. The anti-abuse rule, found in section 501(c)
(15)(C), explains how gross receipts (including premiums) from

“Gross receipts,” for purposes of determining the tax-exempt
status of section 501(c)(7) organizations, are the club's income
from its usual activities and include:
• Charges;
• Admissions;
• Membership fees;
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2018 Instructions for Form 990-EZ

A return, report, notice, or exemption application can be
inspected at an IRS office free of charge. Copies of these items
can also be obtained through the organization as discussed in
the following section.

all members of a controlled group are aggregated in figuring the
tests described earlier.

Appendix D: Public Inspection of
Returns

Note. The publicly available data on electronically filed Forms
990 is now available in a machine-readable format through
Amazon Web Services (AWS). The publicly available data
doesn't include donor information or other personally identifiable
information.

Some members of the public rely on Form 990 or 990-EZ as the
primary or sole source of information about a particular
organization. How the public perceives an organization in such
cases may be determined by the information presented on its
returns.

Through the Organization

An organization's completed Form 990 or 990-EZ is available
for public inspection as required by section 6104. Schedule B
(Form 990, 990-EZ, or 990-PF) is open for public inspection for
section 527 organizations filing Form 990 or 990-EZ, and for
organizations filing Form 990-PF. A tax-exempt
organization—other than a section 501(c)(3) organization
(including a section 4947(a)(1) nonexempt charitable trust) or a
section 527 political organization—is no longer required to report
the names and addresses of its contributors on the Schedule B
(Form 990, 990-EZ, or 990-PF), Schedule of Contributors,
attached to its Form 990 or Form 990-EZ for tax years ending on
or after December 31, 2018. See Rev. Proc. 2018-38 for more
information about this revised disclosure requirement. All other
information reported on Schedule B, including the amount of
contributions, the description of noncash contributions, and any
other information, is required to be made available for public
inspection unless it clearly identifies the contributor. Form 990-T
filed after August 17, 2006, by a section 501(c)(3) organization
to report any unrelated business income, is also available for
public inspection and disclosure.

Public inspection and distribution of certain returns of unrelated business income. Section 501(c)(3) organizations that
are required to file Form 990-T after August 17, 2006, must
make Form 990-T available for public inspection under section
6104(d)(1)(A)(ii).
Public inspection and distribution of returns and reports
for a political organization. Section 527 political
organizations required to file Form 990 or 990-EZ must, in
general, make their Form 8871, Political Organization Notice of
Section 527 Status; Form 8872, Political Organization Report of
Contributions and Expenditures; 990; or 990-EZ available for
public inspection in the same manner as annual information
returns of section 501(c) organizations. See Public inspection
and distribution of applications for tax exemption and annual
information returns of tax-exempt organizations next. Generally,
Forms 8871 and 8872 are available for inspection and printing in
the Charities & Nonprofits section of the IRS website at IRS.gov/
Charities- &-Non-Profits.
A section 527 political organization (and an organization

Through the IRS

TIP filing Form 990-PF) must disclose their Schedule B

(Form 990, 990-EZ, or 990-PF). See the Instructions for
Schedule B. The penalties discussed in General Instruction G
also apply to section 527 political organizations (Rev. Rul.
2003-49, 2003-20 I.R.B. 903).

Use Form 4506-A to request:
• A copy of an exempt or political organization's return, report,
notice, or exemption application; or
• An inspection of a return, report, notice, or exemption
application at an IRS office.

Public inspection and distribution of applications for tax
exemption and annual information returns of tax-exempt
organizations. Under Regulations sections 301.6104(d)-1
through 3, a tax-exempt organization must:
• Make its application for recognition of exemption and its
annual information returns available for public inspection without
charge at its principal, regional, and district offices during regular
business hours;
• Make each annual information return available for a period of
3 years beginning on the date the return is required to be filed
(determined with regard to any extension of time for filing) or is
actually filed, whichever is later; and
• Provide a copy without charge (for Form 990-T, this
requirement applies only to Forms 990-T filed after August 17,
2006), other than a reasonable fee for reproduction and actual
postage costs, of all or any part of any application or return
required to be made available for public inspection to any
individual who makes a request for such copy in person or in
writing (except as provided in Regulations sections
301.6104(d)-2 and (d)-3).

The IRS can provide copies of exempt organization returns
on DVD. Requesters can order the complete set (for example, all
Forms 990 and 990-EZ or all Forms 990-PF filed for a year) or a
partial set by state or by month. If you are ordering a partial set
on DVD, indicate the format (alchemy or raw), state(s), and
month(s) you are ordering. Sample DVD requests aren’t
available for individual states. DVDs and sample DVDs aren’t
available for individual exempt organizations. Complete
information, including the cost, is available on the IRS website.
Search Copies of Scanned EO Returns Available at IRS.gov/
Charities- &-Non-Profits/Copies-of-Scanned-EOReturnsAvailable.
The IRS generally can’t disclose portions of an exemption
application relating to trade secrets, etc. The IRS can, however,
disclose the names and addresses of contributors of section 527
organizations filing Form 990 or 990-EZ and for organizations
that file Form 990-PF. For other organizations that file Form 990
or 990-EZ, the names and addresses of contributors aren’t
required to be made available for public inspection. See the
Instructions for Schedule B (Form 990, 990-EZ, or 990-PF) for
more information about the disclosure of that schedule.

Definitions

Tax-exempt organization is any organization that is described
in section 501(c) or (d) and is exempt from taxation under
section 501(a). The term “tax-exempt organization” also includes
any section 4947(a)(1) nonexempt charitable trust or nonexempt
private foundation that is subject to the reporting requirements of
section 6033.

Form 990-T must be made available for public inspection by
both the IRS and section 501(c)(3) organizations under Notice
2008-49, 2008-20 I.R.B. 979.
A section 527 organization's Form 990 or 990-EZ can only be
requested for tax years beginning after June 30, 2000.

Application for tax exemption includes:

• Any prescribed application form (such as Form 1023,

A private foundation's Form 990-PF can only be requested for
tax years beginning after March 13, 2000.
2018 Instructions for Form 990-EZ

1023-EZ, 1024, or 1024-A),
-29-

• All documents and statements the IRS requires an applicant
to file with the form,
• Any statement or other supporting document submitted in
support of the application, and
• Any letter or other document issued by the IRS concerning
the application.

• Must allow the individual to photocopy the document at no
charge, if the individual provides photocopying equipment at the
place of inspection.
Organizations that don’t maintain permanent offices. A
tax-exempt organization with no permanent office:
• Must make its application for tax exemption and its annual
information returns available for inspection at a reasonable
location of its choice;
• Must permit public inspection within a reasonable amount of
time after receiving a request for inspection (normally not more
than 2 weeks) and at a reasonable time of day;
• Can mail, within 2 weeks of receiving the request, a copy of its
application for tax exemption and annual information returns to
the requester instead of allowing an inspection; and
• Can charge the requester for copying and actual postage
costs only if the requester consents to the charge.
An organization that has a permanent office, but has no office
hours, or very limited hours during certain times of the year, must
make its documents available during those periods when office
hours are limited, or not available, as though it were an
organization without a permanent office.

Application for tax exemption doesn’t include:

• Any application for tax exemption filed before July 15, 1987,

unless the organization filing the application had a copy of the
application on July 15, 1987;
• In the case of a tax-exempt organization other than a private
foundation, the name and address of any contributor to the
organization; or
• Any material that isn’t available for public inspection under
section 6104.

!

If there is no prescribed application form, see
Regulations section 301.6104(d)-1(b)(3)(ii).

CAUTION

Annual information return includes:

• An exact copy of the Form 990 or 990-EZ filed by a

tax-exempt organization as required by section 6033,
• Any amended return the organization files with the IRS after
the date the original return is filed (both the original and
amended return are subject to the public inspection
requirements), and
• An exact copy of Form 990-T if one is filed by a 501(c)(3)
organization.

Special Rules Relating to Copies

Time and place for providing copies in response to
requests made in person. A tax-exempt organization must:
• Provide copies of required documents under section 6104(d)
in response to a request made in person at its principal, regional,
and district offices during regular business hours; and
• Provide such copies to a requester on the day the request is
made, except for unusual circumstances (see next).
Unusual circumstances. In the case of an in-person
request, where unusual circumstances exist so that fulfilling the
request on the same business day causes an unreasonable
burden to the tax-exempt organization, the organization must
provide the copies no later than the next business day following
the day that the unusual circumstances cease to exist, or the 5th
business day after the date of the request, whichever occurs
first.
Unusual circumstances include:
• Requests received that exceed the organization's daily
capacity to make copies;
• Requests received shortly before the end of regular business
hours that require an extensive amount of copying; or
• Requests received on a day when the organization's
managerial staff capable of fulfilling the request is conducting
special duties, such as student registration or attending an
off-site meeting or convention, rather than its regular
administrative duties.
Agents for providing copies. For rules relating to use of
agents to provide copies, see Regulations sections
301.6104(d)-1(d)(1)(iii) and 1(d)(2)(ii)(C).
Request for copies in writing. A tax-exempt organization
must honor a written request for a copy of documents (or the
requested part) required under section 6104(d) if the request:
1. Is addressed to, and delivered by mail, electronic mail,
facsimile, or a private delivery service, as defined in section
7502(f), to a principal, regional, or district office of the
organization; and
2. Sets forth the address to which the copy of the
documents should be sent.

The copy must include all information furnished to the IRS on
Form 990, 990-EZ, or 990-T, as well as all schedules,
attachments, and supporting documents, except for the name
and address of any contributor to the organization. See the
Instructions for Schedule B (Form 990, 990-EZ, or 990-PF).
However, schedules, attachments, and supporting documents
filed with Form 990-T that don’t relate to the imposition of
unrelated business income tax aren’t required to be made
available for public inspection and copying. See Notice 2008-49.
Annual returns more than 3 years old. An annual
information return doesn’t include any return after the expiration
of 3 years from the date the return is required to be filed
(including any extension of time that has been granted for filing
such return) or is actually filed, whichever is later.
If an organization files an amended return, however, the
amended return must be made available for a period of 3 years
beginning on the date it is filed with the IRS.
Local or subordinate organizations. For rules relating to
annual information returns of local or subordinate organizations,
see Regulations section 301.6104(d)-1(f)(2).
Regional or district offices. A regional or district office is
any office of a tax-exempt organization, other than its principal
office, that has paid employees, whether part time or full time,
whose aggregate number of paid hours a week are normally at
least 120.
A site isn’t considered a regional or district office, however, if:
• The only services provided at the site further exempt
purposes (such as day care, health care, or scientific or medical
research); and
• The site doesn’t serve as an office for management staff,
other than managers who are involved solely in managing the
exempt function activities at the site.

Special Rules Relating to Public Inspection

Permissible conditions on public inspection. A
tax-exempt organization:
• Can have an employee present in the room during an
inspection;
• Must allow the individual conducting the inspection to take
notes freely during the inspection; and
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2018 Instructions for Form 990-EZ

filed (including any extension of time that is granted for filing
such return) or is actually filed, whichever is later.

Time and Manner of Fulfilling Written Requests
IF the organization...

THEN the organization...

Documents Provided by Local and Subordinate
Organizations

receives a written request for a must mail the copy of the requested
copy
documents (or the requested parts) within 30
days from the date it receives the request.
mails the copy of the
requested document

is deemed to have provided the copy on the
postmark date or private delivery mark (if
sent by certified or registered mail, the date
of registration or the date of the postmark on
the sender's receipt).

requires payment in advance

is required to provide the copies within 30
days from the date it receives payment.

Applications for tax exemption. Except as otherwise
provided, a tax-exempt organization that didn’t file its own
application for tax exemption (because it is a local or
subordinate organization covered by a group exemption letter)
must, upon request, make available for public inspection, or
provide copies of, the application submitted to the IRS by the
central or parent organization to obtain the group exemption
letter and those documents which were submitted by the central
or parent organization to include the local or subordinate
organization in the group exemption letter.
However, if the central or parent organization submits to the
IRS a list or directory of local or subordinate organizations
covered by the group exemption letter, the local or subordinate
organization is required to provide only the application for the
group exemption ruling and the pages of the list or directory that
specifically refer to it. The local or subordinate organization must
permit public inspection, or comply with a request for copies
made in person, within a reasonable amount of time (normally
not more than 2 weeks) after receiving a request made in person
for public inspection or copies and at a reasonable time of day.
See Regulations section 301.6104(d)-1(f) for further information.
Annual information returns. A local or subordinate
organization that doesn’t file its own annual information return
(because it is affiliated with a central or parent organization that
files a group return) must, upon request, make available for
public inspection, or provide copies of, the group returns filed by
the central or parent organization.
However, if the group return includes separate schedules for
each local or subordinate organization included in the group
return, the local or subordinate organization receiving the
request can omit any schedules relating only to other
organizations included in the group return.
The local or subordinate organization must permit public
inspection, or comply with a request for copies made in person,
within a reasonable amount of time (normally not more than 2
weeks) after receiving a request made in person for public
inspection or copies and at a reasonable time of day.
In a case where the requester seeks inspection, the local or
subordinate organization can mail a copy of the applicable
documents to the requester within the same time period instead
of allowing an inspection. In such a case, the organization can
charge the requester for copying and actual postage costs only if
the requester consents to the charge.
If the local or subordinate organization receives a written
request for a copy of its annual information return, it must fulfill
the request by providing a copy of the group return in the time
and manner specified in Request for copies in writing, earlier.
The requester has the option of requesting from the central or
parent organization, at its principal office, inspection or copies of
group returns filed by the central or parent organization. The
central or parent organization must fulfill such requests in the
time and manner specified in Special Rules Relating to Public
Inspection and Special Rules Relating to Copies, earlier.
Failure to comply. Any person who doesn’t comply with the
public inspection requirements will be assessed a penalty of $20
for each day that inspection wasn’t permitted, up to a maximum
of $10,000 for each return. The penalties for failure to comply
with the public inspection requirements for applications are the
same as those for annual returns, except that the $10,000
limitation doesn’t apply (sections 6652(c)(1)(C) and (D)). Any
person who willfully fails to comply with the public inspection

receives a request or payment is deemed to have received it 7 days after
by mail
the date of the postmark, absent evidence to
the contrary.
receives a request transmitted is deemed to have received it the day the
by electronic mail or facsimile request is transmitted successfully.
receives a written request
without payment or with an
insufficient payment, when
payment in advance is
required

must notify the requester of the prepayment
policy and the amount due within 7 days from
the date of the request's receipt.

receives consent from an
individual making a request

can provide a copy of the requested
document exclusively by electronic mail (the
material is provided on the date the
organization successfully transmits the
electronic mail).

Request for a copy of parts of a document. A tax-exempt
organization must fulfill a request for a copy of the organization's
entire application for tax exemption or annual information return
or any specific part of its application or return. A request for a
copy of less than the entire application or less than the entire
return must specifically identify the requested part or schedule.
Fees for copies. A tax-exempt organization can charge a
reasonable fee for providing copies. Before the organization
provides the documents, it can require that the individual
requesting copies of the documents pay the fee. If the
organization has provided an individual making a request with
notice of the fee, and the individual doesn’t pay the fee within 30
days, or if the individual pays the fee by check and the check
doesn’t clear upon deposit, the organization can disregard the
request.
Form of payment—(A) Request made in person. If a
tax-exempt organization charges a fee for copying, it must
accept payment by cash and money order for requests made in
person. The organization can accept other forms of payment,
such as credit cards and personal checks.
(B) Request made in writing. If a tax-exempt organization
charges a fee for copying and postage, it must accept payment
by certified check, money order, and either personal check or
credit card for requests made in writing. The organization can
accept other forms of payment.
Avoidance of unexpected fees. Where a tax-exempt
organization doesn’t require prepayment and a requester
doesn’t enclose payment with a request, an organization must
receive consent from a requester before providing copies for
which the fee charged for copying and postage exceeds $20.
Documents to be provided by regional and district
offices. Except as otherwise provided, a regional or district
office of a tax-exempt organization must satisfy the same rules
as the principal office about allowing public inspection and
providing copies of its application for tax exemption and annual
information returns.
A regional or district office isn’t required, however, to make its
annual information return available for inspection or to provide
copies until 30 days after the date the return is required to be
2018 Instructions for Form 990-EZ

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Whether a group of requests constitutes a harassment
campaign depends on the relevant facts and circumstances
such as:
• A sudden increase in requests,
• An extraordinary number of requests by form letters or
similarly worded correspondence,
• Hostile requests,
• Evidence showing bad faith or deterrence of the
organization's exempt purpose,
• Prior provision of the requested documents to the purported
harassing group, and
• A demonstration that the organization routinely provides
copies of its documents upon request.

requirements for annual returns or exemption applications will be
subject to an additional penalty of $5,000 (section 6685).

Making Applications and Returns Widely
Available

A tax-exempt organization isn’t required to comply with a request
for a copy of its application for tax exemption or an annual
information return if the organization has made the requested
document widely available (see below).
An organization that makes its application for tax exemption
and/or annual information return widely available must
nevertheless make the document available for public inspection
as required under Regulations section 301.6104(d)-1(a).

A tax-exempt organization can disregard any request for
copies of all or part of any document beyond the first two
received within any 30-day period or the first four received within
any 1-year period from the same individual or the same address,
regardless of whether the Office of Associate Chief Counsel
(TEGE) has determined that the organization is subject to a
harassment campaign.

A tax-exempt organization makes its application for tax
exemption and/or an annual information return widely available if
the organization complies with the Internet posting requirements
and the notice requirements given next.
Internet posting. A tax-exempt organization can make its
application for tax exemption and/or an annual information return
widely available by posting the document on a World Wide Web
page that the tax-exempt organization establishes and maintains
or by having the document posted, as part of a database of
similar documents of other tax-exempt organizations, on a World
Wide Web page established and maintained by another entity.
The document will be considered widely available only if:
• The World Wide Web page through which it is available
clearly informs readers that the document is available and
provides instructions for downloading it;
• The document is posted in a format that, when accessed,
downloaded, viewed, and printed in hard copy, exactly
reproduces the image of the application for tax exemption or
annual information return as it was originally filed with the IRS,
except for any information permitted by statute to be withheld
from public disclosure; and
• Any individual with access to the Internet can access,
download, view, and print the document without special
computer hardware or software required for that format (other
than software that is readily available to members of the public
without payment of any fee) and without payment of a fee to the
tax-exempt organization or to another entity maintaining the
World Wide Web page.
Reliability and accuracy. In order for the document to be
widely available through an Internet posting, the entity
maintaining the World Wide Web page must have procedures
for ensuring the reliability and accuracy of the document that it
posts on the page and must take reasonable precautions to
prevent alteration, destruction, or accidental loss of the
document when posted on its page. In the event that a posted
document is altered, destroyed, or lost, the entity must correct or
replace the document.
Notice requirement. If a tax-exempt organization has made
its application for tax exemption and/or an annual information
return widely available, it must notify any individual requesting a
copy where the documents are available (including the address
on the World Wide Web, if applicable). If the request is made in
person, the organization must provide such notice to the
individual immediately. If the request is made in writing, the
notice must be provided within 7 days of receiving the request.

A tax-exempt organization can apply for a determination that
it is the subject of a harassment campaign and that compliance
with requests that are part of the campaign wouldn’t be in the
public interest by submitting a signed application to the Office of
Associate Chief Counsel (TEGE). See Rev. Proc. 2018-1,
2018-1 I.R.B. 1, available at IRS.gov/irb/2018-01_IRB.
In addition, the organization can suspend compliance with
any request it reasonably believes to be part of the harassment
campaign until it receives a response to its application for a
harassment campaign determination. However, if the Office of
Associate Chief Counsel (TEGE) determines that the
organization didn’t have a reasonable basis for requesting a
determination that it was subject to a harassment campaign or
reasonable belief that a request was part of the campaign, the
officer, director, trustee, employee, or other responsible
individual of the organization remains liable for any penalties for
not providing the copies in a timely fashion. See Regulations
section 301.6104(d)-3.

Appendix E: Section 4958 Excess
Benefit Transactions

The intermediate sanction regulations are important to the
exempt organization community as a whole, and for ensuring
compliance in this area. The rules provide a roadmap by which
an organization can steer clear of situations that may give rise to
inurement.
Under section 4958, any disqualified person who benefits
from an excess benefit transaction with an applicable
tax-exempt organization is liable for a 25% tax on the excess
benefit. The disqualified person is also liable for a 200% tax on
the excess benefit if the excess benefit isn’t corrected by a
certain date. Also, organization managers who participate in an
excess benefit transaction knowingly, willfully, and without
reasonable cause are liable for a 10% tax on the excess benefit,
not to exceed $20,000 for all participating managers on each
transaction.

Applicable Tax-Exempt Organization

Tax-Exempt Organization Subject to
Harassment Campaign

These rules only apply to certain applicable section 501(c)(3),
501(c)(4), and 501(c)(29) organizations. An applicable
tax-exempt organization is a section 501(c)(3), 501(c)(4), or
501(c)(29) organization that is tax exempt under section 501(a),
or was such an organization at any time during a 5-year period
ending on the day of the excess benefit transaction.

If the Office of Associate Chief Counsel (Tax Exempt and
Government Entities) (TEGE) determines that the organization is
being harassed, a tax-exempt organization isn’t required to
comply with any request for copies that it reasonably believes is
part of a harassment campaign.

An applicable tax-exempt organization doesn’t include:

• A private foundation as defined in section 509(a),
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2018 Instructions for Form 990-EZ

• A governmental entity that is exempt from (or not subject to)
taxation without regard to section 501(a) or relieved from filing
an annual return under Regulations section 1.6033-2(g)(6), and
• Certain foreign organizations.

• The person's compensation is primarily based on revenues
derived from activities of the organization that the person
controls.
• The person has or shares authority to control or determine a
substantial portion of the organization's capital expenditures,
operating budget, or compensation for employees.
• The person manages a discrete segment or activity of the
organization that represents a substantial portion of the
activities, assets, income, or expenses of the organization, as
compared to the organization as a whole.
• The person owns a controlling interest (measured by either
vote or value) in a corporation, partnership, or trust that is a
disqualified person.
• The person is a nonstock organization controlled directly or
indirectly by one or more disqualified persons.
Facts and circumstances tending to show no substantial
influence.
• The person is an independent contractor whose sole
relationship to the organization is providing professional advice
(without having decision-making authority) for transactions from
which the independent contractor won’t economically benefit.
• The person has taken a vow of poverty.
• Any preferential treatment the person receives based on the
size of the person's donation is also offered to others making
comparable widely solicited donations.
• The direct supervisor of the person isn’t a disqualified person.
• The person doesn’t participate in any management decisions
affecting the organization as a whole or a discrete segment of
the organization that represents a substantial portion of the
activities, assets, income, or expenses of the organization, as
compared to the organization as a whole.

An organization isn’t treated as a section 501(c)(3), 501(c)(4),
or 501(c)(29) organization for any period covered by a final
determination that the organization wasn’t tax exempt under
section 501(a), so long as the determination wasn’t based on
private inurement or one or more excess benefit transactions.

Disqualified Person

The vast majority of section 501(c)(3), 501(c)(4), or 501(c)(29)
organization employees and independent contractors won’t be
affected by these rules. Only the few influential persons within
these organizations are covered by these rules when they
receive benefits, such as compensation, fringe benefits, or
contract payments. The IRS calls this class of covered
individuals disqualified persons.
A disqualified person, regarding any transaction, is any
person who was in a position to exercise substantial influence
over the affairs of the applicable tax-exempt organization at any
time during a 5-year period ending on the date of the transaction.
Persons who hold certain powers, responsibilities, or interests
are among those who are in a position to exercise substantial
influence over the affairs of the organization. This would include,
for example, voting members of the governing body, and
persons holding the power of:
• Presidents, chief executive officers, or chief operating
officers; and
• Treasurers and chief financial officers.
A disqualified person also includes certain family members of
a disqualified person, and 35% controlled entities of a
disqualified person.

What about persons who staff affiliated organizations? In
the case of multiple affiliated organizations, the determination of
whether a person has substantial influence is made separately
for each applicable tax-exempt organization. A person can be a
disqualified person for more than one organization in the same
transaction.

The following persons are considered disqualified persons for
the following organizations, along with certain family members
and 35% controlled entities associated with them.
• For a transaction involving a donor advised fund, a donor or
donor advisor of that donor advised fund.
• A donor advised fund sponsoring organization, an investment
advisor of the sponsoring organization.
• A supported organization of a section 509(a)(3) supporting
organization, and the disqualified persons of the section 509(a)
(3) supporting organization.

Excess Benefit Transaction

An excess benefit transaction generally is a transaction in which
an economic benefit is provided by an applicable tax-exempt
organization, directly or indirectly, to or for the use of any
disqualified person, and the value of the economic benefit
provided by the applicable tax-exempt organization exceeds the
value of the consideration (including the performance of
services) received for providing such benefit, but see the special
rules later for donor advised funds and supporting organizations.
An excess benefit transaction also can occur when a disqualified
person embezzles from the exempt organization.

See the instructions for Form 4720, Schedule I, for more
information regarding these disqualified persons.
Who isn’t a disqualified person? The rules also clarify which
persons aren’t considered to be in a position to exercise
substantial influence over the affairs of an organization. They
include:
• An employee who receives benefits that total less than the
highly compensated amount ($115,000 in 2012–2014, $120,000
in 2015–2018) and who doesn’t hold the executive or voting
powers just mentioned; isn’t a family member of a disqualified
person; and isn’t a substantial contributor;
• Tax-exempt organizations described in section 501(c)(3); and
• Section 501(c)(4) organizations engaging in transactions with
other section 501(c)(4) organizations.

To determine whether an excess benefit transaction has
occurred, all consideration and benefits exchanged between a
disqualified person and the applicable tax-exempt organization,
and all entities it controls, are taken into account.
For purposes of determining the value of economic benefits,
the value of property, including the right to use property, is the
FMV. FMV is the price at which property, or the right to use
property, would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy, sell, or
transfer property, or the right to use property, and both having
reasonable knowledge of relevant facts.

Who else can be considered a disqualified person? Other
persons not described above can also be considered
disqualified persons, depending on all the relevant facts and
circumstances.
Facts and circumstances tending to show substantial
influence.
• The person founded the organization.
• The person is a substantial contributor to the organization
under the section 507(d)(2)(A) definition, only taking into
account contributions to the organization for the past 5 years.
2018 Instructions for Form 990-EZ

Donor advised funds. For a donor advised fund, an excess
benefit transaction includes a grant, loan, compensation, or
similar payment from the fund to a:
• Donor or donor advisor,
• Family member of a donor or donor advisor,
• 35% controlled entity of a donor or donor advisor, or
• 35% controlled entity of a family member of a donor or donor
advisor.
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relevant factor in determining the reasonableness of
compensation.

For these transactions, the excess benefit is defined as the
amount of the grant, loan, compensation, or similar payment. For
additional information, see the Instructions for Form 4720.

For determining the reasonableness of compensation, all
items of compensation provided by an applicable tax-exempt
organization in exchange for the performance of services are
taken into account in determining the value of compensation
(except for certain economic benefits that are disregarded, as
discussed later in What benefits are disregarded). Items of
compensation include the following.
• All forms of cash and noncash compensation, including
salary, fees, bonuses, severance payments, and deferred and
noncash compensation.
• The payment of liability insurance premiums for, or the
payment or reimbursement by, the organization of taxes or
certain expenses under section 4958, unless excludable from
income as a de minimis fringe benefit under section 132(a)(4).
(A similar rule applies in the private foundation area.) Inclusion in
compensation for purposes of determining reasonableness
under section 4958 doesn’t control inclusion in income for
income tax purposes.
• All other compensatory benefits, whether or not included in
gross income for income tax purposes.
• Taxable and nontaxable fringe benefits, except fringe benefits
described in section 132.
• Foregone interest on loans.
Written intent required to treat benefits as
compensation. An economic benefit isn’t treated as
consideration for the performance of services unless the
organization providing the benefit clearly indicates its intent to
treat the benefit as compensation when the benefit is paid.
An applicable tax-exempt organization (or entity that it
controls) is treated as clearly indicating its intent to provide an
economic benefit as compensation for services only if the
organization provides written substantiation that is
contemporaneous with the transfer of the economic benefits
under consideration. Ways to provide contemporaneous written
substantiation of its intent to provide an economic benefit as
compensation include:
• The organization produces a signed written employment
contract;
• The organization reports the benefit as compensation on an
original Form W-2, 1099, 990, or 990-EZ, or on an amended
form filed before the start of an IRS examination; or
• The disqualified person reports the benefit as income on the
person's original Form 1040 or on an amended form filed before
the start of an IRS examination.
Exception. To the extent the economic benefit is excluded
from the disqualified person's gross income for income tax
purposes, the applicable tax-exempt organization isn’t required
to indicate its intent to provide an economic benefit as
compensation for services. (For example, employer-provided
health benefits, and contributions to qualified plans under
section 401(a).)

Supporting organizations. For any supporting organization
defined in section 509(a)(3), an excess benefit transaction
includes grants, loans, compensation, or similar payment
provided by the supporting organization to a:
• Substantial contributor,
• Family member of a substantial contributor,
• 35% controlled entity of a substantial contributor, and
• 35% controlled entity of a family member of a substantial
contributor.
Additionally, an excess benefit transaction includes any loans
provided by the supporting organization to a disqualified person
(other than an organization described in section 509(a)(1), (2), or
(4)).
A substantial contributor is any person who contributed or
bequeathed an aggregate of more than $5,000 to the
organization, if that amount is more than 2% of the total
contributions and bequests received by the organization before
the end of the tax year of the organization in which the
contribution or bequest is received by the organization from such
person. In the case of a trust, a substantial contributor also
means the creator of the trust.
The excess benefit for substantial contributors and parties
related to those contributors includes the amount of the grant,
loan, compensation, or similar payment. For additional
information, see the Instructions for Form 4720.
When does an excess benefit transaction usually occur?
An excess benefit transaction occurs on the date the disqualified
person receives the economic benefit from the organization for
federal income tax purposes. However, when a single
contractual arrangement provides for a series of compensation
payments or other payments to a disqualified person during the
disqualified person's tax year, any excess benefit transaction for
these payments occurs on the last day of the disqualified
person's tax year.
In the case of the transfer of property subject to a substantial
risk of forfeiture, or in the case of rights to future compensation
or property, the transaction occurs on the date the property, or
the rights to future compensation or property, isn’t subject to a
substantial risk of forfeiture. Where the disqualified person elects
to include an amount in gross income in the tax year of transfer
under section 83(b), the excess benefit transaction occurs on
the date the disqualified person receives the economic benefit
for federal income tax purposes.
Section 4958 applies only to post-September 1995
transactions. Section 4958 applies the general rules to excess
benefit transactions occurring on or after September 14, 1995.
Section 4958 doesn’t apply to any transaction occurring under a
written contract that was binding on September 13, 1995, and at
all times before the transaction occurs. The special rules
relevant to transactions with donor advised funds and supporting
organizations apply to transactions occurring after August 17,
2006, except that taxes on certain transactions between
supporting organizations and their substantial contributors apply
to transactions occurring on or after July 25, 2006.

What benefits are disregarded? The following economic
benefits are disregarded for purposes of section 4958.
• Nontaxable fringe benefits, for example, an economic benefit
that is excluded from income under section 132.
• Benefits to volunteers, for example, an economic benefit
provided to a volunteer for the organization if the benefit is
provided to the general public in exchange for a membership fee
or contribution of $75 or less per year.
• Benefits to members or donors, for example, an economic
benefit provided to a member of an organization due to the
payment of a membership fee, or to a donor as a result of a
deductible contribution, if a significant number of nondisqualified
persons make similar payments or contributions and are offered
a similar economic benefit.

What Is Reasonable Compensation?

Reasonable compensation is the valuation standard that is used
to determine if there is an excess benefit in the exchange of a
disqualified person's services for compensation.
Reasonable compensation is the value that would ordinarily
be paid for like services by like enterprises under like
circumstances. This is the section 162 standard that will apply in
determining the reasonableness of compensation. The fact that
a bonus or revenue-sharing arrangement is subject to a cap is a
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2018 Instructions for Form 990-EZ

• Benefits to a charitable beneficiary, for example, an economic
benefit provided to a person solely as a member of a charitable
class that the applicable tax-exempt organization intends to
benefit as part of the accomplishment of its exempt purpose.
• Benefits to a governmental unit, for example, a transfer of an
economic benefit to or for the use of a governmental unit, as
defined in section 170(c)(1), if exclusively for public purposes.

d. Any actions by a member of the authorized body having a
conflict of interest; and
e. Documentation of the basis for the determination before
the later of the next meeting of the authorized body or 60 days
after the final actions of the authorized body are taken, and
approval of records as reasonable, accurate, and complete
within a reasonable time thereafter.

Is there an exception for initial contracts? Section 4958
doesn’t apply to any fixed payment made to a person under an
initial contract. This is a very important exception, since it would
potentially apply, for example, to all initial contracts with new,
previously unrelated officers and contractors.
An initial contract is a binding written contract between an
applicable tax-exempt organization and a person who wasn’t a
disqualified person immediately before entering into the
contract.
A fixed payment is an amount of cash or other property
specified in the contract, or determined by a fixed formula that is
specified in the contract, which is to be paid or transferred in
exchange for the provision of specified services or property.
A fixed formula can, in general, incorporate an amount that
depends upon future specified events or contingencies, as long
as no one has discretion when figuring the amount of a payment
or deciding whether to make a payment (such as a bonus).
Treatment as new contract. A binding written contract,
providing that it can be terminated or canceled by the applicable
tax-exempt organization without the other party's consent
(except as a result of substantial nonperformance) and without
substantial penalty, is treated as a new contract, as of the
earliest date that any termination or cancellation would be
effective. Also, a contract in which there is a material change,
which includes an extension or renewal of the contract (except
for an extension or renewal resulting from the exercise of an
option by the disqualified person), or a more than incidental
change to the amount payable under the contract, is treated as a
new contract as of the effective date of the material change.
Treatment as a new contract can cause the contract to fall
outside the initial contract exception, and it thus would be tested
under the FMV standards of section 4958.

Special rebuttable presumption rule for nonfixed payments. As a general rule, in the case of a nonfixed payment, no
rebuttable presumption arises until the exact amount of the
payment is determined, or a fixed formula for figuring the
payment is specified, and the three requirements creating the
presumption have been satisfied. However, if the authorized
body approves an employment contract with a disqualified
person that includes a nonfixed payment (for example,
discretionary bonus) with a specified cap on the amount, the
authorized body can establish a rebuttable presumption as to the
nonfixed payment when the employment contract is entered into
by, in effect, assuming that the maximum amount payable under
the contract will be paid, and satisfying the requirements giving
rise to the rebuttable presumption for that maximum amount.
An IRS challenge to the presumption of reasonableness.
The IRS can refute the presumption of reasonableness only if it
develops sufficient contrary evidence to rebut the probative
value of the comparability data relied upon by the authorized
body. This provision gives taxpayers added protection if they
faithfully find and use contemporaneous persuasive
comparability data when they provide the benefits.
Organizations that don’t establish a presumption of reasonableness. An organization can still comply with section
4958 even if it didn’t establish a presumption of reasonableness.
In some cases, an organization may find it impossible or
impracticable to fully implement each step of the rebuttable
presumption process described above. In such cases, the
organization should try to implement as many steps as possible,
in whole or in part, to substantiate the reasonableness of
benefits as timely and as well as possible. If an organization
doesn’t satisfy the requirements of the rebuttable presumption of
reasonableness, a facts-and-circumstances approach will be
followed, using established rules for determining
reasonableness of compensation and benefit deductions in a
manner similar to the established procedures for section 162
business expenses.

Rebuttable Presumption of Reasonableness

Payments under a compensation arrangement are presumed to
be reasonable and the transfer of property (or right to use
property) is presumed to be at FMV if the following three
conditions are met.
1. The transaction is approved by an authorized body of the
organization (or an entity it controls) which is composed of
individuals who don’t have a conflict of interest concerning the
transaction.
2. Before making its determination, the authorized body
obtained and relied upon appropriate data as to comparability.
There is a special safe harbor for small organizations. If the
organization has gross receipts of less than $1 million,
appropriate comparability data includes data on compensation
paid by three comparable organizations in the same or similar
communities for similar services.
3. The authorized body adequately documents the basis for
its determination concurrently with making that determination.
The documentation should include:
a. The terms of the approved transaction and the date
approved;
b. The members of the authorized body who were present
during debate on the transaction that was approved and those
who voted on it;
c. The comparability data obtained and relied upon by the
authorized body and how the data was obtained;
2018 Instructions for Form 990-EZ

Section 4958 Taxes
Tax on disqualified persons. An excise tax equal to 25% of
the excess benefit is imposed on each excess benefit
transaction between an applicable tax-exempt organization and
a disqualified person. The disqualified person who benefited
from the transaction is liable for the tax. If the 25% tax is
imposed and the excess benefit transaction isn’t corrected within
the tax period, an additional excise tax equal to 200% of the
excess benefit is imposed.
If a disqualified person makes a payment of less than the full
correction amount, the 200% tax is imposed only on the unpaid
portion of the correction amount. If more than one disqualified
person received an excess benefit from an excess benefit
transaction, all such disqualified persons are jointly and
severally liable for the taxes.
To avoid the imposition of the 200% tax, a disqualified person
must correct the excess benefit transaction during the tax
period. The tax period begins on the date the transaction occurs
and ends on the earlier of the date the statutory notice of
deficiency is issued or the section 4958 taxes are assessed.
This 200% tax can be abated if the excess benefit transaction
subsequently is corrected during a 90-day correction period.
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• The FMV of the property on the date the property is returned
to the organization, or
• The FMV of the property on the date the excess benefit
transaction occurred.
Insufficient payment. If the payment resulting from the
return of the property is less than the correction amount, the
disqualified person must make an additional cash payment to
the organization equal to the difference.
Excess payment. If the payment resulting from the return of
the property exceeds the correction amount described earlier,
the organization can make a cash payment to the disqualified
person equal to the difference.

Tax on organization managers. An excise tax equal to 10% of
the excess benefit may be imposed on the participation of an
organization manager in an excess benefit transaction between
an applicable tax-exempt organization and a disqualified person.
This tax, which can’t exceed $20,000 for any single transaction,
is only imposed if the 25% tax is imposed on the disqualified
person, the organization manager knowingly participated in the
transaction, and the manager's participation was willful and not
due to reasonable cause. There is also joint and several liability
for this tax. An organization manager may be liable for the tax on
both disqualified persons and on organization managers in
appropriate circumstances.
An organization manager is any officer, director, or trustee of
an applicable tax-exempt organization, or any individual having
powers or responsibilities similar to officers, directors, or
trustees of the organization, regardless of title. An organization
manager isn’t considered to have participated in an excess
benefit transaction where the manager has opposed the
transaction in a manner consistent with the fulfillment of the
manager's responsibilities to the organization. For example, a
director who votes against giving an excess benefit would
ordinarily not be subject to this tax.
A person participates in a transaction knowingly if the person
has actual knowledge of sufficient facts so that, based solely
upon such facts, the transaction would be an excess benefit
transaction. Knowing doesn’t mean having reason to know. The
organization manager ordinarily won’t be considered knowing if,
after full disclosure of the factual situation to an appropriate
professional, the organization manager relied on the
professional's reasoned written opinion on matters within the
professional's expertise or if the manager relied on the fact that
the requirements for the rebuttable presumption of
reasonableness have been satisfied. Participation by an
organization manager is willful if it is voluntary, conscious, and
intentional. An organization manager's participation is due to
reasonable cause if the manager has exercised responsibility on
behalf of the organization with ordinary business care and
prudence.

Churches and Section 4958

The regulations make it clear that the IRS will apply the
procedures of section 7611 when initiating and conducting any
inquiry or examination into whether an excess benefit
transaction has occurred between a church and a disqualified
person.

Revenue-Sharing Transactions

Proposed intermediate sanction regulations were issued in
1998. The proposed regulations had special provisions covering
“any transaction in which the amount of any economic benefit
provided to or for the use of a disqualified person is determined
in whole or in part by the revenues of one or more activities of
the organization. . .”—so-called revenue-sharing transactions.
Rather than setting forth additional rules on revenue-sharing
transactions, the final regulations reserve this section.
Consequently, until the IRS issues new regulations for this
reserved section on revenue-sharing transactions, these
transactions will be evaluated under the general rules (for
example, the FMV standards) that apply to all contractual
arrangements between applicable tax-exempt organizations and
their disqualified persons.

Revocation of Exemption and Section 4958

Section 4958 doesn’t affect the substantive standards for tax
exemption under section 501(c)(3), 501(c)(4), or 501(c)(29),
including the requirements that the organization be organized
and operated exclusively for exempt purposes, and that no part
of its net earnings inure to the benefit of any private shareholder
or individual. The legislative history indicates that in most
instances, the imposition of this intermediate sanction will be in
lieu of revocation. The IRS has indicated that the following
factors will be considered (among other facts and
circumstances) in determining whether to revoke an applicable
tax-exempt organization's exemption status where an excess
benefit transaction has occurred.
• The size and scope of the organization's regular and ongoing
activities that further exempt purposes before and after the
excess benefit transaction or transactions occurred.
• The size and scope of the excess benefit transaction or
transactions (collectively, if more than one) in relation to the size
and scope of the organization's regular and ongoing activities
that further exempt purposes.
• Whether the organization has been involved in multiple
excess benefit transactions with one or more persons.
• Whether the organization has implemented safeguards that
are reasonably figured to prevent excess benefit transactions.
• Whether the excess benefit transaction has been corrected,
or the organization has made good faith efforts to seek
correction from the disqualified person(s) who benefited from the
excess benefit transaction.

Correcting an Excess Benefit Transaction

A disqualified person corrects an excess benefit transaction by
undoing the excess benefit to the extent possible, and by taking
any additional measures necessary to place the organization in
a financial position not worse than that in which it would be if the
disqualified person were dealing under the highest fiduciary
standards. The organization isn’t required to rescind the
underlying agreement; however, the parties may need to modify
an ongoing contract for future payments.
A disqualified person corrects an excess benefit by making a
payment in cash or cash equivalents equal to the correction
amount to the applicable tax-exempt organization. The
correction amount equals the excess benefit plus the interest on
the excess benefit; the interest rate can be no lower than the
applicable federal rate. There is an anti-abuse rule to prevent the
disqualified person from effectively transferring property other
than cash or cash equivalents.
Exception. For a correction of an excess benefit transaction
described in Donor advised funds, earlier, no amount repaid in a
manner prescribed by the Secretary can be held in a donor
advised fund.
Property. With the agreement of the applicable tax-exempt
organization, a disqualified person can make a payment by
returning the specific property previously transferred in the
excess benefit transaction. The return of the property is
considered a payment of cash (or cash equivalent) equal to the
lesser of:

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2018 Instructions for Form 990-EZ

Appendix F: Forms and Publications
To File or Use
Other Forms That May Be Required
Schedule A (Form 990 or 990-EZ)
Schedule B (Form 990, 990-EZ, or 990-PF)
Schedule C (Form 990 or 990-EZ)
Schedule E (Form 990 or 990-EZ)
Schedule G (Form 990 or 990-EZ)
Schedule L (Form 990 or 990-EZ)
Schedule N (Form 990 or 990-EZ)
Schedule O (Form 990 or 990-EZ)
Forms W-2 and W-3
Form W-9
Form 720
Form 926
Form 940
Form 941
Form 943
Form 990-T

Form 990-W
Form 1023
Form 1023-EZ
Form 1024
Form 1024-A
Form 1040
Form 1041

Form 1096
Form 1098 series
Form 1099 series

2018 Instructions for Form 990-EZ

Public Charity Status and Public Support
Schedule of Contributors
Political Campaign and Lobbying Activities
Schools
Supplemental Information Regarding Fundraising or Gaming Activities
Transactions With Interested Persons
Liquidation, Termination, Dissolution, or Significant Disposition of Assets
Supplemental Information to Form 990 or 990-EZ
Wage and Tax Statement; and Transmittal of Wage and Tax Statements
Request for Taxpayer Identification Number and Certification
Quarterly Federal Excise Tax Return
Return by a U.S. Transferor of Property to a Foreign Corporation
Employer's Annual Federal Unemployment (FUTA) Tax Return
Employer's QUARTERLY Federal Tax Return. Used to report social security, Medicare,
and income taxes withheld by an employer and social security and Medicare taxes paid
by an employer
Employer's Annual Federal Tax Return for Agricultural Employees
Exempt Organization Business Income Tax Return. Filed separately for organizations
with gross income of $1,000 or more from business unrelated to the organization's
exempt purpose. The Form 990-T is also filed to pay the section 6033(e)(2) proxy tax. For
Form 990, see Part V, line 3, and its instructions; for Form 990-EZ, see Part V, line 35,
and its instructions
Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations
Application for Recognition of Exemption Under Section 501(c)(3) of the Internal
Revenue Code
Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the
Internal Revenue Code
Application for Recognition of Exemption Under Section 501(a)
Application for Recognition of Exemption Under Section 501(c)(4) of the Internal
Revenue Code
U.S. Individual Income Tax Return
U.S. Income Tax Return for Estates and Trusts. Required of section 4947(a)(1)
nonexempt charitable trusts that also file Form 990 or 990-EZ. However, if such a trust
doesn’t have any taxable income under Subtitle A of the Code, it can file Form 990 or
990-EZ, and doesn’t have to file Form 1041 to meet its section 6012 filing requirement. If
this condition is met, complete Form 990 or 990-EZ, and don’t file Form 1041
Annual Summary and Transmittal of U.S. Information Returns
Information returns to report mortgage interest, student loan interest, qualified tuition and
related expenses received, and a contribution of a qualified vehicle that has a claimed
value of more than $500
Information returns to report acquisitions or abandonments of secured property,
proceeds from broker and barter exchange transactions, cancellation of debt, dividends
and distributions, certain government and state qualified tuition program payments,
taxable distributions from cooperatives, interest payments, payments of long-term care
and accelerated death benefits, miscellaneous income payments, distributions from an
HSA, Archer MSA or Medicare Advantage MSA, original issue discount, distributions
from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts,
etc., and proceeds from real estate transactions. Also, use certain of these returns to
report amounts that were received as a nominee on behalf of another person

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Form 1120-POL
Form 1128
Form 2848
Form 3115
Form 3520
Form 4506
Form 4506-A
Form 4562
Form 4720
Form 5471
Form 5500

Form 5578
Form 5768
Form 7004
Form 8038
Form 8282

Form 8274
Form 8283
Form 8300

Form 8328
Form 8718
Form 8821
Form 8822-B
Form 8868
Form 8871
Form 8872
Form 8886
Form 8886-T
Form 8899
Form 8963
Form SS-4
FinCEN Form 114

U.S. Income Tax Return for Certain Political Organizations
Application To Adopt, Change, or Retain a Tax Year
Power of Attorney and Declaration of Representative
Application for Change in Accounting Method
Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain
Foreign Gifts
Request for Copy of Tax Return
Request for Public Inspection or Copy of Exempt or Political Organization IRS Form
Depreciation and Amortization
Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code
Information Return of U.S. Persons With Respect To Certain Foreign Corporations
Annual Return/Report of Employee Benefit Plan. Employers who maintain pension,
profit-sharing, or other funded deferred compensation plans are generally required to file
the Form 5500. This requirement applies whether or not the plan is qualified under the
Internal Revenue Code and whether or not a deduction is claimed for the current tax year.
Available at: EFAST.dol.gov/welcome.html.
Annual Certification of Racial Nondiscrimination for a Private School Exempt From
Federal Income Tax
Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make
Expenditures To Influence Legislation
Application for Automatic Extension of Time To File Certain Business Income Tax,
Information, and Other Returns
Information Return for Tax-Exempt Private Activity Bond Issues
Donee Information Return. Required of the donee of charitable deduction property who
sells, exchanges, or otherwise disposes of donated property within 3 years after receiving
it. The form is also required of any successor donee who disposes of charitable
deduction property within 3 years after the date that the donor gave the property to the
original donee. It doesn’t matter who gave the property to the successor donee. It may
have been the original donee or another successor donee
Certification by Churches and Qualified Church-Controlled Organizations Electing
Exemption From Employer Social Security and Medicare Taxes
Noncash Charitable Contributions
Report of Cash Payments Over $10,000 Received in a Trade or Business. Used to report
cash amounts in excess of $10,000 that were received in a single transaction (or in two or
more related transactions) in the course of a trade or business (as defined in section
162). However, if the organization receives a charitable cash contribution in excess of
$10,000, it isn’t subject to the reporting requirement since the funds weren’t received in
the course of a trade or business
Carryforward Election of Unused Private Activity Bond Volume Cap
User Fee for Exempt Organization Determination Letter Request
Tax Information Authorization
Change of Address or Responsible Party — Business. Used to notify the IRS of a change
in mailing address that occurs after the return is filed
Application for Automatic Extension of Time To File an Exempt Organization Return
Political Organization Notice of Section 527 Status
Political Organization Report of Contributions and Expenditures
Reportable Transaction Disclosure Statement
Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction
Notice of Income From Donated Intellectual Property. Used to report net income from
qualified intellectual property to the IRS and the donor
Report of Health Insurance Provider Information
Application for Employer Identification Number
Report of Foreign Bank and Financial Accounts (FBAR)

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2018 Instructions for Form 990-EZ

Helpful Publications
Publication 15

(Circular E), Employer's Tax Guide

Publication 15-A

Employer's Supplemental Tax Guide

Publication 463

Travel, Gift, and Car Expenses

Publication 525

Taxable and Nontaxable Income

Publication 526

Charitable Contributions

Publication 538

Accounting Periods and Methods

Publication 557

Tax-Exempt Status for Your Organization

Publication 561

Determining the Value of Donated Property

Publication 598

Tax on Unrelated Business Income of Exempt Organizations

Publication 892

How to Appeal an IRS Determination on Tax-Exempt Status

Publication 946

How To Depreciate Property

Publication 947

Practice Before the IRS and Power of Attorney

Publication 976

Disaster Relief

Publication 1771

Charitable Contributions—Substantiation and Disclosure Requirements

Publication 1779

Independent Contractor or Employee

Publication 1828

Tax Guide for Churches and Religious Organizations

Publication 3079

Tax-Exempt Organizations and Gaming

Publication 3386

Tax Guide—Veterans' Organizations

Publication 3833

Disaster Relief, Providing Assistance Through Charitable Organizations

Publication 4220

Applying for 501(c)(3) Tax-Exempt Status

Publication 4221-PC

Compliance Guide for 501(c)(3) Public Charities

Publication 4221-PF

Compliance Guide for 501(c)(3) Private Foundations

Publication 4302

A Charity's Guide to Vehicle Donation

Publication 4303

A Donor's Guide to Vehicle Donation

Publication 4386

Compliance Checks

Publication 4573

Group Exemptions

Publication 4630

The Exempt Organizations Products and Services Catalog

Appendix G: Use of Form 990 or
990-EZ To Satisfy State Reporting
Requirements

maintaining a checking account; or (e) owning or renting
property there.

Monetary Tests May Differ

Some or all of the dollar limitations applicable to Form 990 or
990-EZ when filed with the IRS may not apply when using Form
990 or 990-EZ in place of state or local report forms. Examples
of the IRS dollar limitations that don’t meet some state
requirements are the normally $50,000 gross receipts minimum
that creates an obligation to file with the IRS and the $100,000
minimum for listing independent contractors in Form 990, Part
VII, Section B; or Form 990-EZ, Part VI, line 51.

Some states and local government units will accept a copy of
Form 990 or 990-EZ in place of all or part of their own financial
report forms. The substitution applies primarily to section 501(c)
(3) organizations, but some of the other types of section 501(c)
organizations are also affected. If the organization uses Form
990 or 990-EZ to satisfy state or local filing requirements, such
as those under state charitable solicitation acts, note the
following discussions.

Additional Information May Be Required

Determine State Filing Requirements

State or local filing requirements may require the organization to
attach to Form 990 or 990-EZ one or more of the following: (a)
additional financial statements, such as a complete analysis of
functional expenses or a statement of changes in net assets; (b)
notes to financial statements; (c) additional financial schedules;
(d) a report on the financial statements by an independent
accountant; and (e) answers to additional questions and other
information. Each jurisdiction may require the additional material
to be presented on forms they provide. The additional

The organization can consult the appropriate officials of all
states and other jurisdictions in which it does business to
determine their specific filing requirements. Doing business in a
jurisdiction can include any of the following: (a) soliciting
contributions or grants by mail or otherwise from individuals,
businesses, or other charitable organizations; (b) conducting
programs; (c) having employees within that jurisdiction; (d)

2018 Instructions for Form 990-EZ

-39-

• Tickets,
• Receipts, or
• Other evidence of payments received in connection with

information doesn’t have to be submitted with the Form 990 or
990-EZ filed with the IRS.
Even if the Form 990 or 990-EZ that the organization files with
the IRS is accepted by the IRS as complete, a copy of the same
return filed with a state won’t fully satisfy that state's filing
requirement if (1) required information isn’t provided, including
any of the additional information discussed previously; or (2) the
state determines that the form wasn’t completed by following the
applicable Form 990 or 990-EZ instructions or supplemental
state instructions. In such case, the state may ask the
organization to provide the missing information or to submit an
amended return.

fundraising activities.

Use of Audit Guides May Be Required

To ensure that all organizations report similar transactions
uniformly, many states require that contributions, gifts, grants,
similar amounts, and functional expenses be reported according
to the AICPA industry audit and accounting guide, Not-for-Profit
Organizations (New York, NY, AICPA, 2003), supplemented, as
applicable, by Standards of Accounting and Financial Reporting
for Voluntary Health and Welfare Organizations (Washington,
DC, National Health Council, Inc., 1998, 4th edition).

IF...

THEN...

the organization
advertises its
fundraising events

it must keep samples of the advertising copy.

the organization uses
radio, television, or
Internet to solicit
contributions

it must keep samples of scripts, transcripts,
printouts of emails and Web pages, or other
evidence of solicitations in such media.

the organization uses
outside fundraisers

it must keep samples of the fundraising materials
used by the outside fundraisers.

For each fundraising event, the organization must keep
records to show the portion of any payment received from
patrons that isn’t deductible; that is, the retail value of the goods
or services received by the patrons. See Disclosure statement
for quid pro quo contributions, later.

Donated Services and Facilities

Noncash contributions.
Form 990 schedules. An organization may be required to
file Schedule M (Form 990), Noncash Contributions, to report
certain noncash (property) contributions; see the instructions for
Schedule M on who must file. Also, an organization that files
Schedule B must report certain information on noncash
contributions.
Dispositions of donated property. If an organization
receives a charitable contribution of property and within 3 years
sells, exchanges, or otherwise disposes of the property, the
organization may need to file Form 8282, Donee Information
Return. See Form 990, Part V, lines 7c and 7d.
Donated property over $5,000. If the organization received
from a donor a partially completed Form 8283, Noncash
Charitable Contributions, the donee organization generally
should complete the Form 8283 and return it so the donor can
get a charitable contribution deduction. The organization should
keep a copy for its records. See Form 8283 for more details.
Qualified intellectual property. An organization described
in section 170(c) (except a private foundation) that receives or
accrues net income from a qualified intellectual property
contribution must file Form 8899, Notice of Income From
Donated Intellectual Property. See Form 990, Part V, line 7g.
The organization must file Form 8899 for any tax year that
includes any part of the 10-year period beginning on the date of
contribution but not for any tax years in which the legal life of the
qualified intellectual property has expired or the property failed
to produce net income.
A donee organization reports all income from donated
qualified intellectual property as income other than contributions
(for example, royalty income from a patent). A donee isn’t
required to report as contributions on Form 990 (including
schedules) any of the additional deductions claimed by donors
under section 170(m)(1). See Pub. 526.
Motor vehicles, boats, and airplanes. Special rules apply
to charitable contributions of motor vehicles, boats, or airplanes
with a claimed value of more than $500. See Form 990, Part V,
line 7h; section 170(f)(12); Pub. 4302, A Charity’s Guide to
Vehicle Donation; and the Instructions for Form 1098-C,
Contributions of Motor Vehicles, Boats, and Airplanes.

Even though donated services and facilities may be reported as
items of revenue and expense in certain circumstances, many
states and the IRS don’t permit the inclusion of those amounts in
Form 990, Parts VIII and IX; Form 990-EZ, Part I; or (except for
such donations by a governmental unit) in Schedule A (Form
990 or 990-EZ). The optional reporting of donated services and
facilities is discussed in the instructions for Part III for Forms 990
and 990-EZ.

Amended Returns

If the organization submits supplemental information or files an
amended Form 990 or 990-EZ with the IRS, it must also send a
copy of the information or amended return to any state with
which it filed a copy of Form 990 or 990-EZ originally to meet
that state's filing requirement. If a state requires the organization
to file an amended Form 990 or 990-EZ to correct conflicts with
the Form 990 or 990-EZ instructions, the organization must also
file an amended return with the IRS.

Method of Accounting

Most states require that all amounts be reported based on the
accrual method of accounting. See also General Instruction C.

Appendix H: Contributions

This Appendix discusses certain federal tax rules that apply to
exempt organizations and donors for contributions. See also
Pub. 526 and Pub. 1771.
Schedule B (Form 990, 990-EZ, or 990-PF). Many
organizations that file Form 990, 990-EZ, or 990-PF must file
Schedule B to report on tax-deductible and non-tax-deductible
contributions. See Schedule B and its instructions to determine
whether Schedule B must be filed. See also the Schedule B
instructions for the public inspection rules applicable to that
form.
Solicitation of nondeductible contribution. See the
instructions for Form 990, Part V, line 6, for rules on public notice
of nondeductibility when soliciting nondeductible contributions.
Keeping fundraising records for tax-deductible contributions. A section 501(c) organization that is eligible to receive
tax-deductible contributions under section 170(c) must keep
sample copies of its fundraising materials, such as:
• Dues statements,
• Fundraising solicitations,

Substantiation and disclosure requirements for charitable
contributions.
Recordkeeping for cash, check, or other monetary
charitable gifts. To deduct a contribution of a cash, check, or
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2018 Instructions for Form 990-EZ

$75, the organization must provide a disclosure statement to the
donor. See section 6115.
The organization’s disclosure statement must:
1. Be written;
2. Estimate in good faith the value of the organization’s
goods or services given in return for the donor’s contribution;
3. Describe, but need not value, certain goods or services
given to the donor’s employees or partners; and
4. Inform the donor that a charitable contribution deduction
is limited as follows:

other monetary gift (regardless of the amount), a donor must
maintain a bank record or a written communication from the
donee organization showing the donee's name, date, and
amount of the contribution. See section 170(f)(17) and
Regulations section 1.170A-15 for more information. In the case
of a text message contribution, the donor's phone bill meets the
section 170(f)(17) recordkeeping requirement of a reliable
written record if it shows the name of the donee organization and
the date and amount of contribution.
Acknowledgment to substantiate charitable
contributions. A donee organization should be aware that a
donor of a charitable contribution of $250 or more (including a
contribution of unreimbursed expenses) can’t take an income tax
deduction unless the donor obtains the organization’s
acknowledgment to substantiate the charitable contribution. See
section 170(f)(8) and Regulations section 1.170A-13(f). A
charitable organization that receives a payment made as a
contribution is treated as the donee organization for this purpose
even if the organization (according to the donor’s instructions or
otherwise) distributes the amount received to one or more
charities.

Donor’s contribution
Less
The organization’s money, goods, and services given in return
Equals
Donor’s deductible charitable contribution.
Exceptions. No disclosure statement is required if the
organization gave only the following.
1. Goods or services with insubstantial value.
2. Certain membership benefits.
3. Goods or services described in (1) or (2) given to the
employees of a donor organization or the partners of a donor
partnership.
4. Intangible religious benefits.

The organization's acknowledgment must:
1. Be written;
2. Be contemporaneous;
3. State the amount of any cash it received;
4. State:
a. Whether the organization gave the donor any intangible
religious benefits (no valuation needed), and
b. Whether the organization gave the donor any goods or
services in return for the donor’s contribution (a quid pro quo
contribution); and
5. Describe goods or services the organization:
a. Received (no valuation needed), and
b. Gave (good faith estimate of value needed).

These exceptions are defined below. See also Regulations
sections 1.170A-1, 1.170A-13, and 1.6115-1.
Certain goods or services disregarded for substantiation
and disclosure purposes.
Goods or services with insubstantial value. Generally,
under section 170, the deductible amount of a contribution is
determined by taking into account the FMV, not the cost to the
charity, of any benefits that the donor received in return.
However, the cost to the charity may be used in determining
whether the benefits are insubstantial. See below.
Cost basis. If a taxpayer makes a payment of $54 or more to
a charity and receives only token items in return, the items have
insubstantial value if they:
• Bear the charity’s name or logo, and
• Have an aggregate cost to the charity of $10.80 or less
(low-cost article amount of section 513(h)(2)).
FMV basis. If a taxpayer makes a payment to a charitable
organization in a fundraising campaign and receives benefits
with an FMV of not more than 2% of the amount of the payment,
or $108, whichever is less, the benefits received have
insubstantial value in determining the taxpayer’s contribution.

If the organization accepts a contribution in the name of one
of its activities or programs, then indicate the organization’s
name in the acknowledgment as well as the program's name.
For example: “Thank you for your contribution of $300 to
(organization’s name) made in the name of our Special Relief
Fund program. No goods or services were provided in exchange
for your contribution.”
Similarly, if a domestic organization owns and controls a
domestic disregarded entity, and the disregarded entity receives
a contribution, then indicate the organization's name in the
acknowledgment as well as the relationship with the disregarded
entity. For example: “Thank you for your contribution of $300 to
(organization's name) made in the name of (name of
disregarded entity), which is treated as a disregarded entity of
(organization's name) for federal tax purposes. No goods or
services were provided in exchange for your contribution.” See
Notice 2012-52, 2012-35 I.R.B. 317.
Exception. The written acknowledgment need not include a
good faith estimate of value for goods or services given to the
donor if they are the following.
1. Goods or services with insubstantial value.
2. Certain membership benefits.
3. Goods or services described in (1) or (2) given to the
employees of a donor organization or the partners of a donor
partnership.
4. Intangible religious benefits.

The dollar amounts given above are applicable to tax

TIP year 2018 under Rev. Proc. 2018-18. They are adjusted
annually for inflation.

When a donee organization provides a donor only with goods
or services having insubstantial value under Rev. Proc. 2018-18
(and any successor documents), the contemporaneous written
acknowledgment may indicate that no goods or services were
provided in exchange for the donor’s payment.
Certain membership benefits. Other goods or services that
are disregarded for substantiation and disclosure purposes are
annual membership benefits offered to a taxpayer in exchange
for a payment of $75 or less per year that consist of the
following.
1. Any rights or privileges that the taxpayer can exercise
frequently during the membership period such as:
a. Free or discounted admission to the organization's
facilities or events, and
b. Free or discounted parking.

These exceptions are defined next.
Disclosure statement for quid pro quo contributions. If the
organization receives a quid pro quo contribution of more than
2018 Instructions for Form 990-EZ

-41-

of the contributions made by a taxpayer to a donee organization
during a tax year equals $250 or more.
Contemporaneous. A written acknowledgment is
contemporaneous if the donor obtains it on or before the earlier
of:
• The date the donor files the original return for the tax year in
which the contribution was made, or
• The due date (including extensions) for filing the donor’s
original return for that year.
Substantiation of payroll contributions. An organization
may substantiate an employee’s contribution by deduction from
its payroll by:
• A pay stub, Form W-2, or other document showing a
contribution to a donee organization; together with
• A pledge card or other document from the donee organization
that shows its name. For contributions of $250 or more, the
document must state that the donee organization provides no
goods or services for any payroll contributions.
The amount withheld from each payment of wages to a taxpayer
is treated as a separate contribution.
Substantiation of matched payments. If a taxpayer’s
payment to a donee organization is matched by another payer,
and the taxpayer receives goods or services in consideration for
its payment and some or all of the matching payment, those
goods or services will be treated as provided in consideration for
the taxpayer’s payment and not in consideration for the matching
payment.
Disclosure statement. An organization must provide a
written disclosure statement to donors who make a quid pro quo
contribution in excess of $75 (section 6115). This requirement is
separate from the written substantiation acknowledgment a
donor needs for deductibility purposes. While, in certain
circumstances, an organization may be able to meet both
requirements with the same written document, an organization
must be careful to satisfy the section 6115 written disclosure
statement requirement in a timely manner because of the
penalties involved.
Quid pro quo contribution. A quid pro quo contribution is a
payment that is made both as a contribution and as a payment
for goods or services provided by the donee organization.
Example. A donor gives a charity $100 in consideration for a
concert ticket valued at $40 (a quid pro quo contribution). In this
example, $60 would be deductible. Because the donor’s
payment exceeds $75, the organization must furnish a
disclosure statement even though the taxpayer’s deductible
amount doesn’t exceed $75. Separate payments of $75 or less
made at different times of the year for separate fundraising
events won’t be aggregated for purposes of the $75 threshold.
Good faith estimate. An organization may use any
reasonable method in making a good faith estimate of the value
of goods or services provided by that organization in
consideration for a taxpayer’s payment to that organization. A
good faith estimate of the value of goods or services that aren’t
generally available in a commercial transaction may be
determined by reference to the FMV of similar or comparable
goods or services. Goods or services may be similar or
comparable even though they don’t have the unique qualities of
the goods or services that are being valued.
Goods or services. Goods or services include:
• Cash,
• Property,
• Services,
• Benefits, and
• Privileges.
In consideration for. A donee organization provides goods
or services in consideration for a taxpayer’s payment if, at the
time the taxpayer makes the payment to the donee organization,
the taxpayer receives, or expects to receive, goods or services
in exchange for that payment.

2. Admission to events that are:
a. Open only to members; and
b. Within the low-cost article limitation, per person.
Example 1. E offers a basic membership benefits package
for $75. The package gives members the right to buy tickets in
advance, free parking, and a gift shop discount of 10%. E’s $150
preferred membership benefits package also includes a $20
poster. Both the basic and preferred membership packages are
for a 12-month period and include about 50 productions. E offers
F, a patron of the arts, the preferred membership benefits in
return for a payment of $150 or more. F accepts the preferred
membership benefits package for $300. E’s written
acknowledgment satisfies the substantiation requirement if it
describes the poster, gives a good faith estimate of its FMV
($20), and disregards the remaining membership benefits.
Example 2. In Example 1, if F received only the basic
membership package for its $300 payment, E’s
acknowledgment need state only that no goods or services were
provided.
Example 3. G Theater Group performs four plays. Each play
is performed twice. Nonmembers can purchase a ticket for $15.
For a $60 membership fee, however, members are offered free
admission to any of the performances. H makes a payment of
$350 and accepts this membership benefit. Because of the
limited number of performances, the membership privilege can’t
be exercised frequently. Therefore, G’s acknowledgment must
describe the free admission benefit and estimate its value in
good faith.
Certain goods or services provided to donor’s
employees or partners. Certain goods or services provided to
employees of donor organizations or partners of donor
partnerships may be disregarded for substantiation and
disclosure purposes. Nevertheless, the donee organization's
disclosure statement must describe such goods or services. A
good faith estimate of value isn’t needed.
Example. Museum J offers a basic membership benefits
package for $40. It includes free admission and a 10% gift shop
discount. Corporation K makes a $50,000 payment to J and in
return, J offers K’s employees free admission, a t-shirt with J’s
logo that costs J $4.50, and a 25% gift shop discount. Because
the free admission is a privilege that can be exercised frequently
and is offered in both benefit packages, and the value of the
t-shirts is insubstantial, Museum J's disclosure statement need
not value or mention the free admission benefit or the t-shirts.
However, because the 25% gift shop discount to K’s employees
differs from the 10% discount offered in the basic membership
benefits package, J's disclosure statement must describe the
25% discount but need not estimate its value.

Definitions

Substantiation. It is the responsibility of the donor:

• To value a donation, and
• To obtain an organization's written acknowledgment

substantiating the donation.
There is no prescribed format for the organization's written
acknowledgment of a donation. Letters, postcards, or
computer-generated forms may be acceptable. The
acknowledgment must, however, provide sufficient information
to substantiate the amount of the deductible contribution. The
organization may either:
• Provide separate statements for each contribution of $250 or
more, or
• Furnish periodic statements substantiating contributions of
$250 or more.
Separate contributions of less than $250 aren’t subject to the
requirements of section 170(f)(8), regardless of whether the sum
-42-

2018 Instructions for Form 990-EZ

Goods or services a donee organization provides in
consideration for a payment by a taxpayer include goods or
services provided in a year other than the year in which the
donor makes the payment to the donee organization.
Intangible religious benefits. Intangible religious benefits
are provided only by organizations organized exclusively for
religious purposes. Examples include:
• Admission to a religious ceremony; and
• De minimis tangible benefits, such as wine provided in
connection with a religious ceremony.
Penalties. A charity that knowingly provides a false
substantiation acknowledgment to a donor may be subject to the
penalties under section 6701 and/or section 7206(2) for aiding
and abetting an understatement of tax liability.
Charities that fail to provide the required disclosure statement
for a quid pro quo contribution of more than $75 will incur a
penalty of $10 per contribution, not to exceed $5,000 per
fundraising event or mailing. The charity may avoid the penalty if
it can show that the failure was due to reasonable cause (section
6714).

Getting answers to your tax questions. On IRS.gov, get
answers to your tax questions anytime, anywhere.
• Go to IRS.gov/Help for a variety of tools that will help you get
answers to some of the most common tax questions.
• Go to IRS.gov/ITA for the Interactive Tax Assistant, a tool that
will ask you questions on a number of tax law topics and provide
answers. You can print the entire interview and the final
response for your records.
• You may also be able to access tax law information in your
electronic filing software.
• Apply for an Employer Identification Number (EIN). An EIN
can be applied for online by visiting the IRS website at IRS.gov/
EIN. The organization may also apply for an EIN by faxing or
mailing Form SS-4 to the IRS. Customers outside the United
States or U.S. possessions may also apply for an EIN by calling
267-941-1099 (toll call).
• Read the Internal Revenue Code, regulations, or other official
guidance.
• Read Internal Revenue Bulletins.
Getting tax forms and publications. Go to IRS.gov/Forms to
view, download, or print all of the forms and publications you
may need. You can also download and view popular tax
publications and instructions on mobile devices as an eBook at
no charge. Or you can go to IRS.gov/OrderForms to place an
order and have forms mailed to you within 10 business days.

Time For Filing May Differ

The deadline for filing Form 990 or 990-EZ with the IRS differs
from the time for filing reports with some states.

Public Inspection

Phone. If you have questions and/or need help completing
Form 990 or Form 990-EZ, please call 877-829-5500. This
toll-free telephone service is available Monday through Friday.

The Form 990 or 990-EZ information made available for public
inspection by the IRS may differ from that made available by the
states, such as Schedule B (Form 990, 990-EZ, or 990-PF).

Mail. You can send your order for forms, instructions, and
publications to the address below. You should receive a
response within 10 business days after your request is received.

Photographs of Missing Children

The IRS is a proud partner with the National Center for Missing
& Exploited Children® (NCMEC). Photographs of missing
children selected by the Center may appear in instructions on
pages that would otherwise be blank. You can help bring these
children home by looking at the photographs and calling
1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613

Email Subscription

How To Get Tax Help

The IRS has established a subscription-based email service for
tax professionals and representatives of tax-exempt
organizations. Subscribers will receive periodic updates from the
IRS regarding exempt organization tax law and regulations,
available services, and other information. To subscribe, visit
IRS.gov/Charities- &-Non-Profits/Subscribe-to-ExemptOrganization-Update.

If you have questions about a tax issue, need help preparing
your tax return, or want to download free publications, forms, or
instructions, go to IRS.gov and find resources that can help you
right away.
Tax reform. Major tax reform legislation impacting individuals,
businesses, and tax-exempt entities was enacted in the Tax
Cuts and Jobs Act on December 22, 2017. Go to IRS.gov/
TaxReform for information and updates on how this legislation
affects your taxes.

2018 Instructions for Form 990-EZ

-43-

Fiscal Year 2018 Form 990 Series Tax Compliance
Cost Estimates

Paperwork Reduction Act Notice. We ask for the information
on these forms to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We
need it to ensure that you are complying with these laws and to
allow us to figure and collect the right amount of tax. You are not
required to provide the information requested on a form that is
subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. Books or records relating to a form
or its instructions must be retained as long as their contents may
become material in the administration of any Internal Revenue
law. Generally, tax returns and return information are
confidential, as required by section 6103.
Estimates of Taxpayer Burden. These include Forms in the
990 series and attachments and 1023, 1024, 1028, 5578,
5884-C, 8038, 8038-B, 8038-CP, 8038-G, 8038-GC, 8038-R,
8038-T, 8038-TC, 8328, 8718, 8282, 8453-EO, 8453-X, 8868,
8870, 8871, 8872, 8879-EO, 8886-T, 8899 and their schedules
and all the forms tax-exempt organizations attach to their tax
returns. Time spent and out-of-pocket costs are presented
separately. Time burden includes the time spent preparing to file
and to file, with recordkeeping representing the largest
component. Out-of-pocket costs include any expenses incurred
by taxpayers to prepare and submit their tax returns. Examples
include tax return preparation and submission fees, postage and
photocopying costs, and tax preparation software costs. Note
that these estimates do not include burden associated with
post-filing activities. IRS operational data indicate that
electronically prepared and filed returns have fewer arithmetic
errors, implying lower post-filing burden.

Form 990

Form 990-EZ

Form 990-PF Form 990-T

Form 990-N

Projections of
the Number
of Returns to
be Filed with
IRS

322,900

252,900

113,100

124,500

599,800

Estimated
Average Total
Time (Hours)

85

45

47

40

2

Estimated
Average Total
Out-of-Pocket
Costs

$2,400

$500

$1,800

$1,300

$10

Estimated
Total Time
(Hours)

27,370,000

11,440,000

5,280,000

5,040,000

1,320,000

Estimated
Total
Out-of-Pocket
Costs (Note.
Totals may
not add due
to rounding.)

$787,700,000

$128,000,000

$208,500,000 $167,600,000 $5,500,000

Note. Amounts above are for FY2018. Reported time and cost burdens are national averages
and do not necessarily reflect a “typical” case. Most taxpayers experience lower than average
burden, with taxpayer burden varying considerably by taxpayer type. Detail may not add due
to rounding.

Comments and suggestions. We welcome your comments
about these instructions and your suggestions for future editions.

Reported time and cost burdens are national averages and
do not necessarily reflect a “typical” case. Most taxpayers
experience lower than average burden, with taxpayer burden
varying considerably by taxpayer type. For instance, the
estimated average time burden for all taxpayers filing Forms
990, 990-EZ, 990-PF, 990-T, and 990-N and related forms is
35.7 hours, with an average cost of $918 per return. This
average includes all associated forms and schedules, across all
preparation methods and taxpayer activities.

You can send us comments through IRS.gov/
FormComments.
Or you can write to:
Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
Although we can’t respond individually to each comment
received, we do appreciate your feedback and will consider your
comments as we revise our tax forms, instructions, and
publications.
Do not send the form to this address. Instead, see General
Instruction D.

-44-

2018 Instructions for Form 990-EZ

Index
A
Accountant 8
Accounting:
Method 4, 40
Period 4
Accounting Standards Codification 958
(ASC 958) 4
Accounts payable 16
Accounts receivable 16
Accrual (method) 40
Address 8
Change of 7
Website 9
Advance ruling period 4
AKA or a.k.a. (See Name and address)
Amended return 40
Description of amendments 5
Annual information return 1, 31
Anti-abuse rule 28
Appendix:
Appendix A: Exempt Organizations
Reference Chart 27
Appendix B: How to Determine
Whether an Organization's Gross
Receipts are Normally $50,000 (or
$5,000) or Less 27
Appendix C: Special Gross Receipts
Tests for Determining Exempt
Status of Section 501(c)(7) and
501(c)(15) Organizations 28
Appendix D: Public Inspection of
Returns 29
Appendix E: Section 4958 Excess
Benefit Transactions 32
Appendix F: Forms and Publications
To File or Use 37
Appendix G: Use of Form 990 or
990-EZ To Satisfy State Reporting
Requirements 39
Appendix H, Contributions 40
Application for tax exemption 29
Application pending 3
ASC 958 10, 16
Assets:
Net 16
Other 16
Total 16
Assistance to individuals 14
Attachments 7
Attorney 8
Audit guides 40
B
Balance sheet 16
Bank account 23

Bingo 13
Black lung benefit trusts 4
Books and records 13, 23
Book value 16
Buildings 16
Business activities 12
C
Calendar year 4, 7
Candidates for public office 21, 24
Capital contributions 22
Capital gains 13
Cash 16
Cash receipts and disbursements 4
Certificates of deposit 12, 16
Changes in net assets 16, 39
Children:
Photographs of missing 43
Church 3, 36
Church-affiliated organization 3
Club facilities 22
Commercial co-venture 11
Compensation 15, 18, 25, 26
Deferred 18
Reasonable 34, 35
Reportable 18
Conformed copy 19
Contemporaneous 34
Contracts:
Initial 35
Contributions 10, 13
Contributors:
Schedule of 11
Controlled entity 2, 24
Controlling organization 2, 24
Copies 30
D
Deferred compensation 15, 18
Defined contribution plan 18
Depreciation 16
Disclosure 29
Disqualified person 33
Disregarded entities 6
Dissolution 21
Dividends 12, 13, 23
Documents 31
Donations:
Of services 11
Of use of property 11
Donor advised fund 23
Donor advisor 24, 33
Sponsoring organization 2, 23
Supporting organization 34
Dues and assessments 10
Affiliates 12
-45-

Members 12
Nondeductible 20
E
Economic benefit:
Disregarded 34
Interest on loans (foregone) 34
Liability insurance premiums 34
Nontaxable fringe 34
Electronic filing 5
Employee benefits 15
Employer identification number (EIN) 8
EO Determinations 19
Excess benefit transaction 22, 32, 33, 35
Excise tax 21, 22, 35, 36
Exempt purpose 12
Expenses:
Functional 13
Program service 12
Rent 15
Extension of time to file 5
F
Fair market value 33, 35
Federal unemployment tax (FUTA) 15
Federated fundraising agencies 11
Fees:
Copies 31
Fundraising 15
Government 12
Initiation 22
Laboratory 11
Membership 12
Professional 15
Registration 11
Final return 5
Financial account 23
Fiscal year 4
Five highest compensated
employees 25
Fixed payment 35
Foreign country 5
Foreign organization (See Organization)
Forms 23, 37
Form 1023, Application for
Recognition of Exemption Under
Section 501(c)(3) of the Internal
Revenue Code 3
Form 1023-EZ, Streamlined
Application for Recognition of
Exemption Under Section 501(c)
(3) of the Internal Revenue Code 3
Form 1024, Application for
Recognition of Exemption Under
Section 501(a) or for Determination
Under Section 120 3

Forms (Cont.)

Form 1024-A, Application for
Recognition of Exemption Under
Section 501(c)(4) of the Internal
Revenue Code 3
Form 1041, U.S. Income Tax Return
for Estates and Trusts 3
Form 1065, U.S. Return of Partnership
Income 4
Form 1099-MISC, Miscellaneous
Income, Methods 18
Form 1120-POL, U.S. Income Tax
Return for Certain Political
Organizations 21
Form 1128, Application To Adopt,
Change, or Retain a Tax Year 4
Form 3115, Application for Change in
Accounting Method 4
Form 4506, Request for Copy of Tax
Return 5
Form 4506-A, Request for Public
Inspection or Copy of Exempt or
Political Organization IRS Form 29
Form 4720, Return of Certain Excise
Taxes on Charities and Other
Persons Under Chapters 41 and 42
of the Internal Revenue Code 22,
23
Form 5500, Annual Return/Report of
Employee Benefit Plan 4
Form 8822-B, Change of Address or
Responsible Party — Business 8
Form 8868, Application for Automatic
Extension of Time To File an
Exempt Organization Return 5
Form 8886-T, Disclosure by
Tax-Exempt Entity Regarding
Prohibited Tax Shelter
Transaction 23
Form 941, Employer's Quarterly
Federal Tax Return 17
Form 990-BL, Information and Initial
Excise Tax Return for Black Lung
Benefit Trusts and Certain Related
Persons 4
Form 990-N, Electronic Notice
(e-Postcard) for Tax-Exempt
Organizations not Required To File
Form 990 or 990-EZ 2
Form 990-PF, Return of Private
Foundation or Section 4947(a)(1)
Nonexempt Charitable Trust
Treated as a Private Foundation 4
Form 990-T, Exempt Organization
Business Income Tax Return 19,
22
Form W-2, Wage and Tax
Statement 18
Fringe benefits 34
Fund balances 16
Fundraising 10, 11
Fundraising Events 7
fundraising events 10, 13, 14

Fundraising events 14
FUTA (See Federal unemployment tax)
G
Gifts 10
Goods or services 14
Governing documents 19
Grants 10, 14
Gross receipts 22, 27
Gross rental income 12
Gross revenue (See Revenue)
Gross sales 14
Group exemption number (GEN) 8
Group return 3
H
Heath benefits 18
Helpful hints 2
Helpful publications 39
Hours per week 18
I
Incomplete return 6
Independent contractors 15, 25
Insurance 28
Interest 12
Mortgage 15
Rent 15
Interest income 12
Inventory 14
Investment:
Program-related 11, 12
Rental income 12
L
Land 16
Late filing 6
Legislation 20
Liabilities, total 16
Liquidation 21
List of officers directors, trustees, and
key employees 17
List of required schedules and
attachments 7
Loans 22
Lobbying:
Direct 20
Grassroots 20
Lobbying expenses 20
Local or subordinate organizations 30
M
Maintenance expense 15
Major disposition of assets 21
Medicare taxes 15
Membership benefits 12

-46-

Membership dues and
assessments (See Dues and
assessments)
Miscellaneous expenses 16
Miscellaneous income 18
Mission society 3
Money market funds 16
Mortgage interest (See Interest)
N
Name and address 8
Name change 7
Net assets (See Assets)
Net Assets (See Assets)
Noncash contributions 11
Nondiscrimination policy 22
Nonexempt charitable trust 23
Nonfixed payments (See Payments)
Notes receivable 14
Notice 32
O
Occupancy 15, 16
Offices:
Permanent 30
Regional or district 30, 31
Organization:
Affiliated 33
Foreign 2, 32
Political 3, 21, 24, 29
Related 24
Religious 3
Supporting 3, 34
Organization managers 36
Organizing document 19
Other Assets (See Assets)
P
Paid preparer 26
Identifying number of 26
Paperwork Reduction Act Notice 44
Payments:
Compensation 34
Government 11
Independent contractors 15
Nonfixed 35
Services 11
Severance 34
To affiliates 14
Payroll taxes 15
Penalties 16
Failure to file 5
Political campaign activities 24
Political expenditures 21
Political organization (See Organization)
Postage 16
Printing 16
Prior period adjustment 4
Private delivery services 5
Private foundation 4

Professional fees (See Fees)
Program-related
investment (See Investment)
Program services 11
Proxy tax 20
Publications:
Helpful 39
Pub. 15, Circular E Employer's Tax
Guide:
Deferred compensation 17
Pub. 15-A, Employer's Supplemental
Tax Guide 25
Pub. 1771, Charitable
Contributions—Substantiation and
Disclosure Requirements 10
Pub. 1779, Independent Contractor or
Employee 25
Pub. 463, Travel, Entertainment, Gift,
and Car Expenses 11
Pub. 525, Taxable and Nontaxable
Income 25
Pub. 526, Charitable
Contributions 10, 11
Pub. 557, Tax-Exempt Status for Your
Organization 6
Pub. 598, Tax on Unrelated Business
Income of Exempt
Organizations 19
Pub. 946, How To Depreciate
Property 16
Pub. 947, Practice Before the IRS and
Power of Attorney 26
Public charity 4, 23
Public inspection 6, 29, 30, 43
Purpose of form 1
R
Raffles 13
Recordkeeping 6
Related Organization (See Organization)
Rent Expenses (See Expenses)
Reportable
compensation (See Compensation)
Revenue 10
Deferred 16
Gross 13
Program service 11
Revenue sharing transactions 36
Revocation 36

Rounding off 6
Royalties 11, 12, 14
S
Salaries 15
Sale:
Of assets 13
Of inventory 14
Of merchandise 13
Of securities 13
Sale of securities (See Sale)
Savings 12, 16
Savings accounts (See Savings)
Schedule M (Form 990), Noncash
Contributions 40
Schedules 23, 37
Schedule A (Form 990 or 990-EZ),
Public Charity Status and Public
Support 24
Schedule B (Form 990, 990-EZ, or
990-PF), Schedule of
Contributors 1, 8, 43
Schedule C (Form 990 or 990-EZ),
Political Campaign and Lobbying
Activities 20, 24
Schedule E (Form 990 or 990-EZ),
Schools 24
Schedule G (Form 990 or 990-EZ),
Supplemental Information
Regarding Fundraising or Gaming
Activities 14
Schedule L (Form 990 or 990-EZ),
Transactions With Interested
Persons 22
Schedule N (Form 990 or 990-EZ),
Liquidation, Termination,
Dissolution, or Significant
Disposition of Assets 5, 7, 21
Schedule O 4–8, 14, 16, 17, 19, 23,
24, 37
School 24
Securities 12, 16
Securities account 23
Shipping 16
Short accounting period or short year 4
Signature 6
Authority 26
Block 26
Significant Disposition of Net Assets 21

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Social security number 26
Social security taxes 15
Solicitation 11
Specific Instructions 7
State filing requirements 5, 39
Statement of Program Service
Accomplishments 16
State reporting requirements 4, 39
Substantial contributor 34
Substantial influence 33
Substantiation 34
Substitute forms 20
Supporting
organization (See Organization)
Sweepstakes 14
T
Taxes 15, 16, 22, 35
Tax shelter transaction 22
Tax year 7
Telephone number 8
Termination 21
Text message contribution 41
Total assets (See Assets)
Transfers:
To exempt non-charitable related
organizations 24
Trust, section 4947(a)(1) 3, 23
U
U.S. possession 2
U.S. Treasury bills 12, 16
Unrelated trade or business 12
Income 19, 29
Income tax 16
Utilities 15
V
Value:
Nominal or insubstantial 10
W
Website (See Address)
What’s New 1
Who must file 2